Reverse mortgages are available to United States citizens over the age of 62. These mortgages are a type of home loan. They allow you to convert some of your home equity into cash. Thus, the equity that you built up over years of making mortgage payments is paid to you.

To qualify for a reverse mortgage, you must be 62 years of age or older. You must also live in your home as your primary residence. This doesn’t mean you can’t take vacation, but you can’t leave your residence for longer than 364 consecutive days.

Your credit standing or history is not considered when you apply for a reverse mortgage. You must, however, take an FHA approved counseling class. This counseling ensures that borrowers understand exactly what a reverse mortgage is.

If you are approved for a reverse mortgage, your loan size will be determined by five main factors:

• Appraised value of your property, including any health or safety repairs, existing liens
• Interest rate
• Your age
• Whether you choose line of credit, lump sum, or monthly payments
• The value of your property and whether than that value is higher than the limit set by HUD (Department of Housing and Urban Development)

The money you are paid from your reverse mortgage can be used any way you see fit. This money is not taxable, giving you even more financial freedom.

Repayment of the loan is not required until the owner dies, the home is sold, the owner ceases to live on the property, or the owner fails to meet the provisions of the loan.