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If you’re 62 or older and have enough equity in your home you will qualify for a Reverse Mortgage. There are no credit checks, income checks or health checks. There are three types of reverse mortgages;  single-purpose, federally insured or proprietary.  A single purpose reverse mortgage can only be used forone purpose, such as home improve- ment.  A HECM (Home Equity Conversion Mortgage) generally are insured by the FHA.  A proprietary reverse mortgage is a product that is considered a private loan and may not be insured. In most cases if you are applying for a reverse mortgage you will have to meet or talk on the phone with a counselor from an independent approved housing counseling agency.   The counselor is required to explain the loan’s costs and financial implications, and if any alternatives exist to doing a reverse mortgage.  They also should discuss the different options available, most charge a fee of $125.00. 

With a HECM you can select from a term option. tenure option, a credit line or a combination of a upfront payment and a credit line.  A Reverse mortgage’s loan advances are not taxable, generally don’t affect your Social Security or Medicare benefits.  You get to retain title to your home, and will not have to make monthly payments.  The loan must be repaid when the last surviving borrower dies, sells the home, or no longer lives in the home as a primary residence.  If you are considering a reverse mortgage, shop around. Compare your options and the terms various lenders offer. Learn as much as you can about reverse mortgages before you talk to a counselor or a lender.  You should not work with anyone who is trying to sell other financial product such as an annuity with the available proceeds from an reverse mortgage.  With most reverse mortgages, you have at least three days after a closing to cancel for any reason, to cancel you must notify the lender in writing.