Reverse Mortgages – the government insured program that allows older Americans to use their home equity – are becoming increasingly popular. The Department of Housing and Urban Development (HUD), which insures these loans through its Federal Housing Administration, has issued a list of ten key things older Americans should know about this program.
Pros of reverse mortgages
* Allows the homeowner to stay in the home permanently.
* Pays off existing mortgages on the home.
* Simple to qualify for because credit score and income are not considered.
(ARA) – If you are one of America’s 78.2 million baby boomers, you are likely considering what ideal retirement will look like, and the steps required achieving it. With the current economic downturn, many boomers are finding it necessary to revisit their initial retirement goals.
There are 8 common myths about reverse mortgages:
1. A reverse mortgage sells the home to the lender
2. Heirs will not inherit the home
3. The homeowner could getforced out of the home
4. You could outlive the reverse mortgage
5. Social Security and Medicare will be affected
The Home Equity Conversion Mortgage (HECM) program gives the most choices in how you can get your cash from a reverse mortgage. You can take all of your loan as:
