First you have to be age 62 or older. Second, you can borrow against the equity in your home (and never make a house payment as long as you live in the house), or third, you can purchase a home with a required downpayment (and never make a house payment as long as you live in the house). Of course you still have to pay annual taxes and insurance on the home.

The reverse mortgage is a US Department of Housing and Urban Development (HUD) federally insured private loan. The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

The important point to remember is that YOU NEVER MAKE A HOUSE PAYMENT AS LONG AS YOU LIVE IN THE HOUSE. Unlike a second mortgage, the reverse mortgage is different in that it pays you, and is available regardless of your current income, even if that may only be your social security income. The lender can never take your home away and you never need to repay the loan as long as you or one of the borrowers continues to live in the home and keeps the taxes and insurance current.

Qualifying for a HUD reverse mortgage is simple. Please contact me by e mail at mikesaloka@windermere.com, or call direct at 623-293-2739 to have reverse mortgage information sent to you.