The Lowdown on Reverse Mortgages

Rules and Restrictions

• Borrower must be age 62 or older
• No monthly payment is required
• Must obtain co-op board approval in most cases
• Proceeds can be used for any purpose
• No financial reports, credit history or medical reports required
• Loan can be disbursed in the form of a lump sum, line of credit or a monthly payment option
• Loan must be paid back upon the death of the borrower, if the borrower moves out or sells the home
• Loan amounts vary based on age of the borrower; interest rates and adjusted value of the property; and geographic location of the home.
• Single borrowers and older applicants qualify for higher loan amounts
• Remember that reverse mortgages are not for everyone
• Certain mortgage restrictions are attached to government loans

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