January 12th, 2018 7:49 AM by Scott Fenner
Your parents could live the remainder of their years not paying a mortgage* and maybe even getting a monthly check as long as they live in their home.
Your parents may be eligible for an FHA Reverse Mortgage if they are 62 or older, meet financial requirements and have sufficient equity in their home. They will need to live in the home as their principal residence, maintain it, and pay taxes and insurance.
How It Works:
Proceeds from a reverse mortgage first pay off the current mortgage on the home, if applicable. Your parents can access additional funds through a lump sum payment, a line of credit or monthly installments. The amount available depends on the amount of equity they have in their home, settlement costs, interest rates, and their ages. In some cases, funds to pay taxes and insurance are set aside at closing or withheld from regular disbursements.
Points to Remember:
If you would like to discuss reverse mortgages for your loved ones, please give us a call. We’ll be happy to help.
*The homeowner is responsible for paying taxes and insurance and for properly maintaining the home. The home must be used as the homeowner’s primary residence.