If you are wondering what a hud reverse mortgage is and who it helps, maybe this will help you.
A reverse mortgage is a loan for senior homeowners that are at least sixty two years or older that uses a portion of the home’s equity as collateral. The loan usually doesn’t have to be paid until the last person, which is a homeowner, permanently moves out of the house or passes away. After that time, the estate has about six months to pay the rest of the loan or sell the home to pay the remainder of the balance off. All the remaining equity is inherited by the estate. The estate doesn’t have to pay if the house sells for less than the balance of the loan.
To be eligible, the homeowners must be at least sixty two years old and the house must be owned free. Usually there are no income or credit score requirements to apply for the loan. Almost all house types are eligible. Although, mobile homes must have been built thirty years ago or more and the land must be owned and a permanent foundation.
A reverse mortgage can’t be outlived. As long as at least one person lives in the home as their primary place of residence and maintains the home in accordance with FHA requirements the loan will not become due.
So if you are interested in learning more about the process for the above loan, you can find more information on it at www.reverse-mortgage.org.