For seniors 62 and older, Reverse Mortgages may be a great option for gaining access to the equity in their home for additional income. No monthly mortgage payments are required and the equity pulled out of the home does not have to be paid back until the home is sold.
Unlike other loans, there are no credit score or income requirements to obtain a Reverse Mortgage. Reverse Mortgages allow homeowners to increase their monthly income or to utilize the equity in their home to purchase another home that fits their needs. Best of all, the income from a Reverse Mortgage is not taxed. With an FHA Reverse Mortgage, the borrower nor their children will inherit the debt since the Reverse Mortgage cannot exceed the value of the home.