Red Door Real Estate Reverse Mortgage Information for Home Buyers

For older homeowners a reverse mortgage might be a good choice either to do needed repairs, travel, or purchase a vacation property.

A reverse mortgage is a loan against your principal residence which does not have to be paid back as long as you continue to reside there. You can receive the money as monthly payments or all at once. The money, plus interest, is paid back when you die, move out, or sell your house.

There are specific requirements in order to qualify for a reverse mortgage

All owners of the house must be at least 62 years old.

The house must be the primary residence of all owners.

In general the residence must be a single family residence.

The home must not have an existing mortgage, or the mortgage must be repaid from the proceeds of the new Reverse Mortgage.

You must have a mandatory HUD counseling session before finalizing the loan.

Benefits of a Reverse Mortgage

There are no monthly repayments so can't lose home by failing to make payments.

Can never owe more than what the value of the house at the time the loan is paid off.

Heirs are entitled to remainder of the value of the house if there is any equity left at time of last owner's death.

If you elect monthly payments they will continue as long as you are alive even if you end up receiving more than the value of your home.

The money received is not considered taxable income, nor do it affect Social Security Benefits.

Who Offers Reverse Mortgages in Vermont

You can find more information at the www.reversemortgage.org website which lists organizations in Vermont who are currently offering reverse mortgages. You can get lots more info on reverse mortgages by visiting their website.


	Red Door Real Estate Ph: 802-888-6555 - Fax: 802-904-1017 P.O. Box 947 Morrisville, VT 05661 www.reddoorrealestatevt.com