With a reverse mortgage, senior homeowners can borrow against their equity to supplement their income. In this two-part series, we are answering some questions you may have about reverse mortgages. Be sure to check out Frequently Asked Questions About Reverse Mortgages, Part 1.

• Q: What types of homes qualify for a reverse mortgage?
  • A: A variety of types of homes can be eligible for a reverse mortgage. These include single-family homes, multifamily homes, manufactured homes, condos, and homes on agricultural land. The home you take out the reverse mortgage for must be your primary residence in order to be eligible.
• Q: Will the bank/government own my home?
  • A: No, the bank will not own your home because you took out a reverse mortgage, and neither will the government. You will continue to be the owner of your home. You alone will have the power to decide whether or not to sell the home at any point. If you wish to sell it, you can, and the reverse mortgage will come due. If you do not want to sell the home, then you do not have to do so, and the reverse mortgage will not come due until another maturity event takes place (such as the death of the last borrower).
• Q: Does a reverse mortgage impact Medicare or social security payments?
  • A: No, a reverse mortgage will not impact your Medicare or social security payments. A reverse mortgage is a supplement to income, rather than being categorized as “income.” Your benefits will not decrease.

Apply for a Reverse Mortgage

If you have more questions or would like to apply for a reverse mortgage, please call (248) 788-0800. We work with senior homeowners in Farmington Hills, throughout Michigan, and in 14 other states.

A reverse mortgage is a lending product for senior homeowners with significant equity. It is an especially flexible type of loan that you can use for any purpose you want. In this post, we will answer some questions you may have about reverse mortgages.

• Q: How do you receive reverse mortgage funds?
  • A: There are three main options for how to receive reverse mortgage funds. You can receive them in a lump sum, in monthly installments, or as a line of credit. You get to choose whichever works best for you.
• Q: Are you eligible for a reverse mortgage?
  • A: At least one borrower must be age 62 or older to qualify for a reverse mortgage. You must have sufficient equity in a qualifying property that serves as your primary residence, and must be current on all home maintenance payments (and able to stay current).
• Q: What happens if you have a younger spouse?
  • A: If a spouse is younger than 62, they can be listed as an eligible non-borrowing spouse on the reverse mortgage. The benefit of being listed as such is that if the older spouse dies, the younger spouse may qualify for a loan repayment deferment. If they are not listed, the loan may come due immediately.
• Q: Will you be able to stay in your home?
  • A: Yes, you can remain in the home for as long as you want, or until a maturity event occurs (such as the death of the last borrower, or the sale of the home). Many people who take out reverse mortgages opt to stay in their homes for the rest of their lives.

Apply for a Reverse Mortgage

You should now have a stronger understanding of reverse mortgages and how they work. You can find additional answers in Frequently Asked Questions About Reverse Mortgages, Part 2.

To ask us the rest of your reverse mortgage questions, or to get help applying for a reverse mortgage, please call (248) 788-0800. We work with senior homeowners in Farmington Hills, throughout Michigan, and in 14 other states.