The Lowdown on Reverse Mortgages Rules and Restrictions

By Cooperator Staff 2005 Feb Finance

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

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