Well, lets go back to the idea of the reverse mortgages. The target of the Reagan Government about thirty years ago was to help American citizens 62 and over, who were called cash poor but equity rich. The solution was to launch the special loans called the reverse mortgages, which used the equity of the senior homes.

1. The Only Requirements.

The reverse mortgages are easy to take, because the qualification is simple. You must be an American citizen and at least 62 plus you must have an own home, where there is equity left, i.e. it cannot be filled with the loans only. The home must be your permanent home.

2. The Reverse Mortgages Have No Monthly Payments.

And what is even better. If you have an old, usual mortgage left, you will pay it away with the reverse loan. This means even more disposable cash money every month. The loan capital, the interests and all the costs will be paid back, when the home will be sold, a senior will move away or die. Then the home will be sold and a part of the selling price will be used for these payments. It is important to note, that the home price increases will raise the equity, because the borrower will remain as an owner.

3. For Which Purposes The Loan Is Meant?

The senior people use this loan for very different purposes. Some will buy a home for the child, some will use it to pay a sudden extra medical bill, some to pay for the house repair. Actually nobody can say, how you will use the money, that is totally your decision.

4. The Home Is The Only Guarantee.

The lender will not ask the income or credit score information, because there is no monthly payments. The only guarantee is the home equity. The borrower must take a mortgage insurance, which covers the costs, if the home selling price cannot cover the whole loan sum.

5. Altogether 3 Seniors Canb Be The Borrowers.

One, two or three are the possible amounts of the borrowers. It is natural, that all borrowers must fulfil the qualification rules, i.e. to be at least 62 and all must be the home owners. There is no need that these people are relatives to each other. They can be a team of friends, a couple or just one single senior.

If three seniors start as reverse mortgage borrowers, that can be a wise solution, because it is more economical to live in the bigger household. They can have a bigger home, which means a possibility to take bigger reverse mortgage loan. But before you sign anything, please meet the reverse mortgage counselor, because only he can guide and tell all the details.