After retirement, many homeowners may discover that their reduced income is not enough to support the lifestyle to which they have become accustomed. Thousands have found that their social security benefits have shrunk and their retirement pensions have been depleted or significantly reduced due to the US’ economic struggles. How can a homeowner continue to afford his or her home mortgage and lifestyle without diminishing his or her savings? A senior reverse mortgage could be the solution that homeowner is looking for.

How a Senior Reverse Mortgage Stands Apart From Other Home Loans

A senior reverse mortgage is not your typical home loan. It was specifically designed for homeowners aged 62 or older to help them finance their homes without burdening their monthly budget. This type of financing is unique because it requires absolutely no monthly mortgage payments! A homeowner can retain his or her home without worrying about monthly mortgage payments. Homeowners can instead use the money they would have spent every month on the mortgage and pay for other important expenses or leisure activities.

If a homeowner has sufficient equity in his or her home, a senior reverse mortgage can not only be used to eliminate monthly mortgage payments, but to turn that equity into cash. The money can be used any way the homeowner desires and he or she can choose how the funds are disbursed. The disbursement options homeowners can choose from include monthly payments, a lump sum, a line of credit, or a customized option that is created to suit his or her specific needs. The type of disbursement option chosen will determine what type of interest rate the homeowner receives. The proceeds from a homeowner’s reverse mortgage can be used on medical bills, to pay off debt or anything else!

Determine Your Eligibility

Apart from the age requirement, there are not very many senior reverse mortgage requirements, which makes it easy to qualify for the loan, compared to other types of home financing. Applicants must be on the title of the home and the home must be their primary residence, which means they reside there at least six months out of the year. Unlike other types of home loans, this type of financing does not have credit or income requirements, because there are no monthly mortgage payments. So, if a homeowner has less-than-perfect credit or a reduced income, he or she can still qualify to receive great benefits that will enable him or her to maintain financial independence.

Senior Reverse Mortgage Safeguards

Most senior reverse mortgages are insured by the Federal Housing Administration, which works to protect homeowners from mortgage fraud when they seek this type of loan. One way they do this is by requiring all applicants to participate in financial counseling with a HUD-approved financial counselor to ensure that they understand the loan requirements and potential implications. After counseling, homeowners should be adequately informed about senior reverse mortgages and should understand what is expected of them regarding the loan.

Homeowners interested in learning more information about senior reverse mortgages should contact a loan specialist to learn how they can apply. This loan could be just the solution they were searching for and can allow them to enjoy their retirement years without the constant worry of making ends meet.

Author Bio: Victoria Belle-Miller is the newest member of the Senior Reverse Mortgage writing staff. Her background in journalistic writing and ability to evaluate the issues that Americans face in daily life make her a strong addition to the reverse mortgage team!

Category: Finances
Keywords: HECM, senior reverse mortgage, reverse home loan, senior mortgage, homeowner, equity, foreclosure, H