In one of our previous posts, we have defined Reverse Mortgage as a source of monthly income for a senior citizen by using his/her own houses as collateral. The Reverse Mortgage can be a real boon for citizens who have retired from their professional life. These are the people who might suddenly find that their day to day life is becoming difficult with the monthly flow of their job income stopping. By applying for the Reverse Mortgage, such senior citizens can find some joy by getting monthly equities based on their house value. Of course, these funds are not exactly income but something that need to be paid off after a period of time when the property is sold.
Alright, there are some rules to be eligible for the Reverse Mortgage. Let us take a look at who all can qualify to get a Reverse Mortgage in the USA and other related information in simple terms:
- For starters, The Reverse Mortgage in the US is administered by the US Department of Housing and Urban Development (HUD). Reverse Mortgage is technically called as the ‘Home Equity Conversion Mortgage (HECM)’.
- Applicant must be 62 years or older.
- Must own a house and in case there is any existing mortgage on the same, it should be small enough to be paid off before applying for the HECM.
- House can be a simple single family home or consist of 1-4 rooms with the condition that the applicant is an occupant in atleast one unit.
- Must go through a HUD-approved counseling agency like the allrmc.
The above are just few points covered by us on the Reverse Mortgage. While this post is only a quick outline on the subject, allrmc has the A to Z on Reverse Mortgage.