A Reverse Mortgage in Newport News is an option for elderly people to use their homes equity as a resource for additional money for living expenses. In many situations a retirement plan or savings account is simply not enough to survive on for the next 20 to 25 years. A reverse mortgage is a loan similar to a traditional mortgage, except the homeowner borrows the money by using a home they already own as collateral.
There are a variety of requirements that must be met to qualify for a reverse mortgage and there are several rules that do not apply to a reverse mortgage.The first and one of the most important reasons a Reverse Mortgage in Newport News is different than a traditional mortgage is that you do not make any payment on the and your credit history is typically irrelevant. Since you do not have to make monthly payments to repay the loan, you also do not have to show proof of income. The amount of the loan for the reverse mortgage can be used for living expenses to carry you through the remaining years of retirement. The home is used as collateral, so the primary condition of the loan is that the home must be sold if you decide to move or pass away. In the case of dependents, they will have the option to follow the original conditions of the loan and sell the home or they have the option to repay the loan themselves in order to keep the home.
The eligibility requirements vary for the type of home that may be used as collateral. In most situations, the reverse mortgage is approved for a single-family home, however, many condominiums and apartment units also qualify. The borrower of a reverse mortgage must be at least 62 years of age and have equity in the home. If you are married and your spouse also owns the home, they also must be a minimum age of 62. Your home does not have to be paid off to quality for a reverse mortgage; however, you do need to have enough equity in the home to borrow against it.
