Because the reverse loan is always taken against the equity of the home, the income level nor the credit information are not asked. The home forms the only guarantee. The popularity of the reverse loan has risen, because the information and experiences about these loans have spread out.

1. Are You Eligible?

As mentioned the idea of the Government was that as many seniors as possible could use this possibility and this meant that the qualification was decided as simple as possible. The starting point is, that a senior or seniors own the home, where they live permanently and where he or they have equity left.

The idea is to turn a part of the home equity into the reverse loan, which means that the home equity will be the guarantee for the loan. This means, that the lender does not ask the income nor the credit information. So the qualification is clear, if a senior is at least 62 and owns a home, where he has equity left.

2. How Many Borrowers Are Allowed?

Also in this respect the reverse loan terms are flexible.

Altogether three borrowers are accepted, but they all must qualify. That means that all must be owners of the home and use the home as their permanent home at least six months during the year.

3. What Home Types Are Allowed?

Almost Cialis all home types are accepted excluding some mobile homes. The accepted home types are 1-4 units homes, when at least one unit is for the borrower, single family homes, FHA manufactured cheap Tadalis SX generic cialis homes and HUD approved condominiums. A borrower can get the details from the lender or from the counselor.

4. Can You Have Also The Traditional Mortgage?

There are two different things. To pay the home, which happens in the form of a traditional mortgage and to use the equity of the home, which happens in the form of the reverse loan. When the borrower takes the reverse loan and if he has the usual mortgage left, he has to pay away the usual mortgage with the reverse loan. A good thing is that this will increase the monthly amount of the disposable cash.

5. How To Maximize The Counselor Meeting?

A federal counselor is a reverse mortgage expert, who is independent and not in the service of the lender. This means that his only job is to guide the seniors with their financial needs. Before the compulsory meeting with the counselor it is necessary to prepare, i.e. to write a list of questions, which bother a senior.

Author Bio: Juhani Tontti, B.Sc., Marketing. The reverse mortgage is a long term commitment with a lot of details. The federal counselor can explain the details of the reverse mortgages to a senior citizens and also the alternatives. Visit: reverse loan

Category: Finance/Credit/Loans
Keywords: reverse loan,reverse mortgage,reverse mortgages,reverse mortgage loan,reverse mortgages pros and cons,how reverse mortgages work,senior reverse mortgage,reverse home mortgage,HECM reverse mortgage