- Borrower must be age 62 or older
- No monthly payment is required
- Must obtain co-op board approval in most cases
- Proceeds can be used for any purpose
- No financial reports, credit history or medical reports required
- Loan can be disbursed in the form of a lump sum, line of credit or a monthly payment option
- Loan must be paid back upon the death of the borrower, if the borrower moves out or sells the home
- Loan amounts vary based on age of the borrower; interest rates and adjusted value of the property; and geographic location of the home.
- Single borrowers and older applicants qualify for higher loan amounts
- Remember that reverse mortgages are not for everyone
- Certain mortgage restrictions are attached to government loans
The Lowdown on Reverse Mortgages Rules and Restrictions
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