A reverse mortgage is a form of equity release (or lifetime mortgage) available in the United States.
A reverse mortgage is a loan available to seniors ages 62 and older, under a Federal program administered by HUD. Reverse Mortgages enable eligible homeowners to access a portion of their equity. The homeowner can then draw the mortgage principal in a lump sum, by receiving monthly payments over a specified term or over their lifetime, as a revolving line of credit, or some combination thereof. The homeowner’s obligation to repay the loan is deferred until the owner dies, the home is sold, they cease to live on the property, or they breach the provisions of the mortgage–such as failure to maintain the property in good repair, pay property taxes, or keep the property insured against fire, to name a few.
The owner can be out of the home for up to 364 consecutive days (i.e., into aged care). Peoples Home Equity is the only Reverse Mortgage Lender in our area that is funding the Reverse Mortgage Program exclusively, to our knowledge.