What is a reverse mortgage?

Senior homeowners can qualify for a low-interest loan that will use the properties equity as collateral, called a “reverse mortgage.”

The Federal Housing Administration (FHA) guidelines require in order for one to be eligible for a reverse mortgage that all borrowers must be at least age 62. This loan amount will not exceed anymore than about 65% of the homes true value. For a reverse mortgage there will not be any income or credit guidelines to qualify.

Most home types can qualify for a reverse mortgage. But mobile homes must meet certain guidelines including; home must be on foundation permanently, must have been built within the past thirty years, and will have to pass an FHA home inspection. Read more