How Reverse Mortgages Can Help Retired Homeowners or Buyers
Blog posted On May 05, 2022
You’ve spent years investing into your home and now it’s time to reap the rewards of your hard-earned equity. As you get older, you might be thinking about buying a home that better suits your lifestyle. But you also are probably thinking about your retirement funds.
What is a reverse mortgage?
A reverse mortgage is an FHA-insured loan that can help you or a family member convert a portion of your home equity into tax-free cash.
Reverse mortgage benefits
- Eliminate monthly mortgage payments
- Plan for unexpected expenses/ medical bills by maintaining a line of credit that grows over time
- Increase your cash flow by getting a monthly payment for life
- Have a better alternative to cash reserves (home loans are not taxable income)
- Gain a tax management tool that can help you qualify for deductions
- Leave your legacy to heirs
Eligibility
- Must be at least 62 years old
- Home must be a primary residence
- Must own home outright or have significant equity
- Must be a single-family home, 2-4-unit dwelling or FHA-approved condo
- Must receive reverse mortgage counseling
Let’s explore options that can help you retire with MORE.
