What is a reverse mortgage?         A reverse mortgage is a special type of loan that enable seniors to convert some of their homes equity into tax-free funds.  Unlike traditional equity loans, no repayment is required until thet home is no longer the borrower's primary residence.

Who is eligible?           Senior homeowners, over the age of 62 who occupy the property as their principal residence.  We can do reverse mortgages on single-family homes, town-homes, condos, and even 2 to 4 unit dwellings.  The best part is there are no income, credit or employment requirements to qualify.

What are some of the benefits?          With a reverse mortgage the borrower always has the right to own and occupy the home.  The lender never takes ownership of the property.  The available cash can be used for any purpose and does not affect Social Security and Medicare benefits.  Also, unlike popularly believed, the heirs can keep the home once the reverse mortgage is repaid.

How is the loan repaid?          A reverse mortgage is due and payable when the property is no longer considered the borrower's primary residence.  The loan must be repaid in one payment - either from the sale of the home or from other resources.

 I hope this is some valuable information about this government regulated and insured program.   There are many myths and misconceptions about reverse mortgages.  Get yourself educated.  This program may just be the answer to the problems of someone you know.  Also, for you real estate agents, this program can also be an additional tool for you to increase you business.  I'll explain more about that in later blogs.