“These mortgages fit a very specialized segment of the marketplace, but for those seeking financial flexibility, they can be a game-changer,” said Jim Hettinger, executive vice president of operations at Guaranteed Rate. “This ensures an extra measure of security for those looking to make their retirement years more comfortable.”
Homeowners aged 62 and older can qualify for a reverse mortgage, provided that they own at least 60% of the equity of their primary residence and the home is FHA eligible. Guaranteed Rate noted that while this type of loan has many similarities with home equity loans, the requirements for reverse mortgages generally allow for more flexible terms for the borrowers.
“Equity build-up over time is one of the most compelling reasons to purchase a home,” Hettinger said. “These loans give long-time homeowners a way to enjoy the benefits of that equity in their retirement years — all while retaining ownership and continuing to live in the house they call home.”
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