If you need a reverse mortgage explained to you so that you can better understand it, then you are in the right place. Reverse mortgages can definitely be confusing for a lot of people and the last thing you want to do is go blindly into this loan because there are reverse mortgage scams as well as several rules and guidelines that you need to know about.

If you are looking at a reverse mortgage you should at least know the basics of what this loan is first. A reverse mortgage is a loan that is based off the equity in your home. This loan is only available to homeowners who are 62 years or older and they have to outright own their home or have only a small mortgage on it.

Reverse Mortgage Explained The main difference between a reverse mortgage and a conventional mortgage or home equity loan is that a reverse mortgage doesn’t require monthly payments by the homeowner. Instead the money is taken tax free and only needs to be paid back when the house is sold or the homeowner dies and leaves the house in their will to someone else. The money can be taken paid out in a lump sum, in monthly payments, or taken as a line of credit. It all depends on what the homeowner wants.

Reverse Mortgage Explained – Steps to Obtain a Reverse Mortgage

There are certain steps that a homeowner has to follow if they want to obtain a reverse mortgage. First, you should be aware of all the reverse mortgage rules and requirements so that you know you are qualified for the loan. These include being 62 years or older, owning your home or having only a small mortgage, no delinquent taxes, and the home has to be your primary residence.

If you meet those requirements and are still interested in applying for a reverse mortgage your next step is to meet with an independent HUD counselor. This is a must before you can even fill out an application for the loan. During this meeting you will have a reverse mortgage explained to you much more in depth and also they will look at your own individual case to see how much money you are approved for. You can’t meet with just any counselor or broker though. It has to be one that is certified by HUD so that they know you are getting the correct information on the loan.

If you are unsure about the process and your finances you may consider taking a family member with you to this meeting with the counselor so that they can help you with the process of applying for the reverse mortgage.

After you meet with the HUD approved counselor you can go ahead and fill out your loan application. You can simply do this with the counselor or find a private lender or financial broker to help you. You should realize though that you need to make sure the lender you do choose is familiar with reverse mortgages and they are certified to handle them.  As mentioned you have the choice to get the loan money in one lump sum, in monthly payments or through a line of credit. Choose the best option for you and what you need the money for.

You definitely should not feel embarrassed about needing a reverse mortgage explained more to you. If you have any more questions you can take a look at the HUD government website or Click Here to request a free information kit. A reverse mortgage is a huge step and will affect your finances for many years. It is definitely something to not take lightly but to do all the research you can on it.

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