Borrower must be at least 62 years old or older.

To be eligible for a reverse mortgage, the borrower must be at least 62 years old or older. This age requirement ensures that the borrower has reached a certain level of maturity and is eligible to access the benefits of a reverse mortgage. A reverse mortgage is a unique financial product that allows homeowners to convert a portion of their home’s equity into loan proceeds, which can be received as monthly payments, a lump sum, or a line of credit.

By meeting the age requirement, borrowers can tap into their home’s equity without having to make monthly mortgage payments. Instead, the loan balance accrues over time, and repayment is typically due when the borrower sells the home, moves out of the home, or passes away. Additionally, borrowers are still responsible for paying property taxes, homeowners insurance, and maintaining the property.

The reverse mortgage program is insured by the Federal Housing Administration (FHA) and is designed to provide a financial tool for older adults to supplement their income in retirement. It is important for borrowers to understand the loan terms, financial assessment, and counseling requirements before opting for a reverse mortgage. Consulting with financial advisors can help borrowers determine if a reverse mortgage aligns with their financial goals and needs.