Reverse Mortgages are considered Home Equity Conversion Mortgages and are federally insured loans that are given to borrowers to access a portion of the available equity in their home while continuing to live there. Reverse Mortgage programs allow borrowers to receive cash necessary for living expenses etc., until they move from the home. There is no minimum credit score required, and borrowers are only eligible if they are 62 years of age or more, and have completed third party HUD-approved counseling. The maximum amount of money allowed to the borrower is determined as the lesser of the appraised value or the sales price (applies to purchases) or the HUD maximum mortgage limit. Different payment options are given to the borrower who can decide which why they would like to receive the funds. There are monthly installment options, lump sum options, or a line of credit option, allowing the borrower to draw on the loan when necessary until the limit has been reached.
