Reverse mortgages have become popular among senior citizens who want to cash in on the equity in their homes. In order to qualify for this type of mortgage, a person must be at least 62 years of age. They must own the home and live in it for at least six months out of the year. This type of mortgage allows the senior citizen to continue owning their home and cash in on the equity which will give them cash in hand. The money does not have to be paid back until you are no longer an occupant of the home. This could be at the time of your death or when you choose to vacate your home and put it on the market. Whatever the case may be, that is when the payments will begin. Here are four facts about Reverse Mortgages in Chesapeake.
The mortgage amount cannot exceed the value of your home. This is beneficial, especially when it comes to situations where a homeowner passes away. If the home is sold and the amount collected is more than the amount due on the mortgage, the excess funds will be applied to your estate. Once the estate settles, if any money is left, it will be given to whomever you have designated it to go to.
There are not credit requirements when it comes to being approved for Reverse Mortgages in Chesapeake. Your income doesn’t matter. The lender will need to verify if there are any liens on the home. They are not necessarily concerned about whether or not you have a credit history.
Investment properties, rentals or second homes are not eligible for a reverse mortgage. Your home must be your primary residence at least six months out of the year in order to qualify for this type of mortgage.
A reverse mortgage has no impact on your social security, medicare or other benefits. If you are a medicaid recipient, you must exhaust all of the funds from the reverse mortgage within the month you receive it. If not, this money could be considered an asset which could result in your medicaid being stopped.
There are many other facts available about reverse mortgages. Any information you need can be found on the internet.