The proceeds from a reverse mortgage are considered a loan, not income. The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM). These loans are federally insured, come with a variety of consumer protections and offer multiple payout options.
As part of the loan, the borrower is required to continue paying property taxes and insurance, maintain the home and use the home as their primary residence.
As long as all loan terms are met, the loan becomes repayable when the last borrower leaves the home. That means you or your heirs can pay off the loan or sell the home.
A reverse mortgage loan for purchase can boost buying power up to 200% and with the same repayment flexibility.
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*This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.
