Maybe you have heard of reverse mortgages. They are not a scam but there are reverse mortgage scams.The youngest borrower in the household must be at least 62 and the homeowners must have a lot of equity.
The reverse mortgage is exactly as it sounds. Instead of making a house payment every month the mortgage company sends the homeowners a check. There are no mortgage payments. The mortgage is due when the home is sold or when the owners die.
The reverse mortgage is a way to unlock the equity that might be tied up in real estate.
Reverse mortgages can also be used to purchase a home. They do require a down payment and the youngest borrower must be at least 62. The borrows must have a lot of equity or own the home outright and have good credit ratings. On loans for purchases, buyers must have the resources to pay property taxes, homeowners insurance, and association dues if applicable.
Reverse mortgages can also be used for home improvements. Sometimes people want to stay in their home and age in place but the home needs some upgrades to make it more senior friendly.
Talk to your bank or lender if you are interested in any of these programs and learn more. There is also counseling for people who choose a reverse mortgage. For more general information visit the HUD.gov web site and read about reverse mortgages.
