Reverse Mortgage Counseling
If you’re a homeowner over the age of 62, a reverse mortgage could be an option to help you stay in your home and access some of your home’s value. At PDS Debt, we help break down the facts so you can decide what’s best for you or your family.
Reverse Mortgage Facts
A reverse mortgage lets you tap into your home’s equity without selling your home. This can come in handy if you’re on a fixed income and need extra each month. You will still own your home, but instead of making payments to a lender, the lender doles our a payment to you.
Here are a few reverse mortgage facts to keep in mind:
- You must be at least 62 years old to qualify.
- The home must be your main place of residence.
- You will still need to pay for property taxes, insurance, and maintenance.
- The loan is usually paid back when the home is sold, or when the borrower no longer lives there.
Getting the Right Reverse Mortgage Information
There’s a lot of reverse mortgage information out there, and it can be hard to know what’s true. That’s where we come in. Our team provides reverse education and gives you clear answers to your questions—no pressure, no confusing terms. Just helpful guidance so you can weigh your options. Everything is explained in a clear, honest way.
Is a Reverse Mortgage Right for You?
Every person’s financial situation is different. A reverse mortgage isn’t the right choice for everyone, but it can be a smart move for some. Our team at PDS can provide insight and help you make an informed decision.
Reverse Mortgage FAQ
A reverse mortgage is a special type of loan for people aged 62 or older. It lets you pull money out of your home’s value without selling your house. You don’t have to make payments each month. Instead, the loan is paid off when you move out, sell the home, or pass away.
There are three main kinds of reverse mortgages:
- Home Equity Conversion Mortgage (HECM): This is the most common kind and is backed by the government.
- Proprietary Reverse Mortgage: These are offered by private companies and may work better for higher-value homes.
- Single-Purpose Reverse Mortgage: This type is offered by some state or local governments. You can only use it for one reason, like home repairs or property taxes.
There’s no minimum set credit score needed to get a reverse mortgage. But lenders do check your credit and income to make sure you can still take care of the maintenance of your home, pay the yearly property taxes, and keep up with insurance.
Reverse mortgages can be a great help to some people, especially those who want to stay in their home and just need extra money.
Here are the main rules:
- You must be at least 62 years old.
- You must own your home or have a small loan left on it.
- You must live in the home most of the time.
- You must be able to pay for taxes, insurance, and basic upkeep.
With a reverse mortgage, the bank you received the loan from will pay you instead of you paying a bank. There are different ways to receive the money – monthly checks or a lump sum. The loan gets paid back later—usually when the home is sold.