The U.S. Department of Housing and Urban Development defines a reverse mortgage as, “a special type of home loan that lets you convert a portion of the equity in your home into cash.” This is typically used for older home owners – 62 years of age and older – and it gives these home owners the chance to take a portion of the home’s equity and transfer it to tax-free collateral or cash while still getting to own the property or refinance.
When the home owner moves or passes away, the estate has to repay the loan in exactly one year. Most people pay off the mortgage by selling the home.
How Can I Get a Reverse Mortgage?
In order to qualify for a reverse mortgage, you must meet a certain number of criteria. These criteria include the following:
- Applicants must be at least 62 years old
- The property or home has to have a mortgage balance of 65 percent of the total home’s value at the most.
- Most homes qualify for reverse mortgages – even mobile homes. The mobile has to meet certain standards in order to qualify.
Reverse mortgages can be granted regardless of your credit history or financial situation. Check with a qualified mortgage modification lawyer if you have any questions.
If you or a loved one is suffering from financially tough times, you may need assistance in dealing with some of your assets. Contact the Maryland mortgage modification lawyers of Chaifetz & Coyle, P.C., today at 443-546-4608 to schedule a free consultation.