How Do Reverse Mortgages Work - Answers to 5 Common Questions

Reverse Mortgage: More and more people are inquiring about the HUD reverse mortgage these days. Below are answers to 5 common questions.

Q: Would I meet the requirements for a reverse mortgage if I currently have an existing loan on my home?

A: Yes, but the existing loan must be paid off prior to or at the settlement of the reverse mortgage. Quite often the reverse mortgage is used to refinance an existing loan.

Q: My property is held in trust. Do I qualify?

A: Yes, but you must be the primary Trustee and qualified by age.

Q: To avoid probate, my children and I own the property in joint tenancy. Do we qualify?

A: Yes, if the children are age 62 and older and live in the property. Otherwise, they would need to be taken off the title for you to participate.

Q: Are mobile homes eligible?

A: Yes. The home must have been built in 1977 or later and have a permanent foundation that is approved by FHA.

Q: Are there restrictions on how I can use the money?

A: Of course not! After all - it's your money.

Additional Resources

A great website for learning more about these loans for seniors is How Do Reverse Mortgages Work. There you'll find additional reverse mortgage FAQ, a form to have a HUD approved reverse mortgage lender contact you, and a lot more.