- November 12, 2018
- Posted by: Kristina
- Category: Connecticut
Connecticut Reverse Mortgage
If you’re looking for an additional source of funds in retirement, a Connecticut reverse mortgage just might be what you need. A reverse mortgage is a loan against the equity in your home. As a result, it is like a home equity loan in reverse. It allows seniors that are 62 and older to use the equity in their home but instead of making monthly payments, they don’t pay anything back until they leave the home.
Most noteworthy is the payment options borrowers have. This program allows borrowers to access funds by a lump sum, equity line, or as a monthly payment. The most popular reverse mortgage is the Home Equity Conversion Mortgage Program (HECM) which is insured by the Federal Housing Administration (FHA).
How does a Connecticut reverse mortgage work?
1. First of all, lenders make payments to the borrower based on a percentage of the equity in the home.
2. Also, a reverse mortgage does not need to be repaid until the borrower dies, sells the home, or permanently moves out.
3. To be eligible, the borrower must also be 62 or older and have equity in a home.
4. Furthermore, homes must meet FHA property standards and flood requirements. Eligible property types are: single-family, 2-4-unit homes with the borrower living in one unit, HUD-approved condo projects, or FHA-compliant manufactured homes.
5. Finally, Borrowers can use the funds for home repairs, medical bills, or to assist with monthly expenses.
Reverse mortgages can be complicated and as a result are not right for everyone. Could a reverse mortgage be right for you? Give me a call today and we can help you determine if a reverse mortgage is in your best interest.
Kristina L. Refsbeck