Reverse mortgage is a specific kind of a home loan that enables landowners to cash equity of their houses. Reverse mortgage for seniors is becoming more famous these days that provides more financial security to enhancement social security, for the improvement of house, to fulfil sudden medical expenses etc.
Requirements of FHA for the eligibility of Reverse mortgage for seniors, you should be at least 62 years of age and a house owner, have a low remaining mortgage balance that you can easily pay, or completely own your house and must live in the house.
It is not like the second mortgage or usual home equity loan, if the borrower not living at the home as a primary resident or does not meet the mortgage requirement, no payment is required. If you can pay the difference between the sales price, property’s closing price and the HECM proceeds, then HECM can be used by you to buy a principal residence.