What is a Reverse Mortgage?
A reverse mortgage loan is a type of home equity loan that is designed to enable senior homeowners to receive income for the equity in their homes while they continue to occupy their homes.
Reverse mortgages are first lien mortgages that allow senior-aged homeowners to access their home's equity with:
- No Monthly Payments
- No Income Qualifications
- No Credit Qualifications
- No Debt Left to Heirs
Homeowners must be aged 62 or older, own their homes free and clear or have significant equity in the property, and they must live in the property as their primary residence.
The HUD-insured reverse mortgage, or the Home Equity Conversion Mortgage (HECM), is the most common type of mortgage for most senior homeowners. For more information on the reverse mortgage, call 311 or contact the Illinois office of the AARP.