A single-purpose reverse mortgage offers regular advance payments of a borrower's equity for a contractually specified purpose.
If you’re an older homeowner who needs help paying for property taxes or home repairs, a single-purpose reverse mortgage may be a good option.
A reverse mortgage is a type of home loan that allows a senior homeowner to borrow money from the bank based on the equity in their home. Reverse mortgage eligibility is limited to homeowners aged 62 or older who use the home as a primary residence and who either own the home outright or have a low mortgage balance. While a reverse mortgage can offer senior homeowners monthly income, it is not necessarily the right choice for everyone. Here’s what you need to know about reverse mortgages to he...
Home equity conversion mortgages are the most common reverse mortgages, but proprietary and single-purpose reverse mortgages offer other benefits.
Table of Contents ; What Is a Reverse Mortgage? · Single-Purpose Reverse Mortgages · Home Equity Conversion Mortgages (HECMs) · Proprietary Reverse Mortgages · FAQs · The Bottom Line
Imagine if your mortgage lender paid you instead of you paying your lender. With a reverse mortgage, that’s exactly what happens. However, you don’t just get free money each month. There are some important caveats to be aware of with reverse mortgages, and these loans are only available to select borrowers. If you’re considering a reverse mortgage, here’s how they work, the types available, and their pros and cons. A reverse mortgage draws funds from your home equity and pays you in regu...
Another variation on the reverse mortgage is the single-purpose reverse mortgage , which restricts the homeowner's withdrawals to payment of specific costs, typically property taxes and...
A reverse mortgage is a home loan available to homeowners 62 and older that relies on your home equity. You or your heirs will repay the reverse mortgage with a future home sale. Using your home equity for dependable monthly payments offers financial advantages as you age. U.S. homeowners borrowed an average claim amount of almost a half-million dollars in 2023. $490,396, slightly lower than the 2022 amount of $498,210, according to the U.S. Department of Housing and Urban Development’s 2023 r...
Wondering whether a single-purpose reverse mortgage may be right for you? Learn what it is and what the pros and cons of a single-purpose reverse mortgage are.
lender Single-purpose reverse mortgage from a state or local government agency or a non-profit organization How to Get a Reverse Mortgage Steps involved in getting a reverse mortgage...