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Reverse mortgages: A basic guide to loan types and requirements

by Carolyn Kay 11/17/2024

Two individuals holding hands

A home is a big investment. As you continue to own a home, it builds equity over the years. This article provides a basic guide of reverse mortgages and how they put the power of your home’s equity back in your grasp.  

What are reverse mortgages? 

A reverse mortgage is a program meant for elders aged 62 and up. It allows them to borrow some of the equity that has built up for their home in the form of a loan. A reverse mortgage lender offers participants to choose a loan type. From there, they can decide if they want a line of credit or lump sum of funding. 

How do you qualify for a reverse mortgage loan? 

To qualify for a reverse mortgage loan, you have to meet these criteria: 

  • Owner of the property bust be at least 62 years old
  • Home must be completely owned or be mostly paid off
  • Must show finances are available to continue paying property taxes
  • Property must be the primary residents 

Once you’ve qualified and been approved for this kind of loan, it’s then time to decide which loan type you’ll utilize. 

Reverse mortgage Types

There are multiple loan types to choose from: 

  • HECMs or Home equity conversion mortgages can be used for almost anything. They are supported by Urban Development and the U.S. Department of Housing
  • Single-Purpose Reverse Mortgages are more affordable. They can be provided by the state and can be used for specific reasons specified by the loan lender. 
  • Proprietary reverse mortgages are not supported by the government. They come with their own requirements for eligibility. These loans are private and easy to obtain. 

Reverse mortgages are helpful for life expenses. Speak with a reverse mortgage lender today to explore your next loan options.

Reverse Mortgage
What Is A Reverse Mortgage
About the Author
Author

Carolyn Kay

As a Real Estate professional, I specialize in helping my clients buy, rent or sell properties in Westchester County. I am passionate, dedicated and committed to my clients and my first priority is to provide them with first class service and guidance throughout the entire process. It has been said that I go above and beyond for my clients to get the deal closed! I have experience working with clients who have financed their purchases with either a conventional, VA or FHA loan and have a good understanding of how they work; no sale is too big or too small for me to take on. My family and I relocated to England for 2 ½ years, this was a wonderful experience but at the same time, it was overwhelming. I have first hand knowledge of the challenges as well as the positives in discovering a new community. I was born and raised in Scarsdale and once married, my husband and I decided to raise our two daughters here. Both of our daughters successfully graduated from the Scarsdale schools and are both married, living and working in Manhattan. After living in the same house for 30 years my husband and I took the leap, sold our home and bought and renovated a condo townhouse in another town. Once again we are discovering a new community and fully understand the highs and lows of selling a home we loved and buying and making a new home. I feel that my personal real estate experiences have made me more in tune with my client’s needs and therefore better able to help them navigate through the complex process. Please call me so that I can put my knowledge and experience to work for you.