Benefits

You will continue to own your home. The bank does not take title to your home, the deed and title remain in your name.

No monthly mortgage payments are required with a reverse mortgage. You are only responsible for taxes, insurance, and home maintenance.

The closing costs of the reverse mortgage can be rolled into the loan, meaning there may be no out of pocket expenses.

There are no limitations on how the funds from a reverse mortgage can be used, including paying off an existing mortgage if you have enough equity.

A reverse mortgage can facilitate the payoff of credit card and/or medical bills.

Social Security and Medicare benefits should not be affected as the funds from a reverse mortgage are considered a loan and not income (consult with your tax accountant).

The reverse mortgage is a non-recourse loan. This means that if the loan balance is higher than the home's sale value, neither you nor your heirs are responsible for the difference.

You can sell your home if you decide to, with any future appreciation being yours after the reverse mortgage balance is paid.

Reverse mortgages are highly regulated and insured by the FHA, ensuring safety and security for borrowers.

These loans do not have to be repaid until the last surviving borrower moves out, passes away, fails to live in the home for 12 consecutive months, or fails to pay property taxes or insurance.

Using a reverse mortgage, you can reduce debt by decreasing monthly expenses or eliminating credit card debt.

You can cover routine or unexpected expenses, emergencies, or life transition costs without dipping into savings.

It helps in building income, cash reserve, and credit line that can be used as needed, which can sustain through market fluctuations.

A reverse mortgage can replace your salary and generate new income.

It allows you to pay for health insurance premiums, Medicare Part B and Part D upon becoming eligible at age 65, and cover long-term care or short-term in-home care.

You can retain other investments and assets, delay collecting Social Security benefit until age 70, or cover costs associated with retirement plans.

It enables you to remodel or update your home, install health-related technologies, or make your home more energy-efficient.

You can contribute to education costs for your children or grandchildren or assist adult children in family emergencies.

To qualify you must be 62 years of age or older. In Texas, both spouses must be at least 62 years of age and live in their home.

You will need to own your home outright or have substantial equity available.

You are required to complete a counseling session with a HUD-approved counseling agency.