Reverse Mortgages are a government insured loan that allows individuals 62 and older to convert a portion of their home’s equity into cash, tax free, while retaining ownership of the home. Unlike traditional mortgages, homeowners don’t make monthly mortgage payments, but instead receive payment against the equity in their home from the lender. The equity can be used to pay off the original mortgage balance, help with bills, supplement social security, make home improvements, fund long-term planning and many other purposes.
Who is eligible?
To qualify for a Reverse Mortgage individuals need to:
• Own or have equity in a one- to four-unit home, townhouse, approved condominium,
or manufactured home.
• Occupy the home as a primary residence.
• Be at least 62 years of age. If married, one borrower
must be at least 62.
Reverse Mortgage payment methods
Depending on your needs, you can choose one or a combination of the following payment options:
• Lump sum
• Fixed monthly payments
• Line of credit
Repaying a Reverse Mortgage
Mortgage payments are not required during the life of your loan. Repayment is required when:
• The home is sold
• The property is no longer your primary residence
• All Reverse Mortgage borrowers have passed away
* Only offered in the State of New York