A: Each month, the interest is added to your loan balance. You only repay the loan when you sell the house or when the loan becomes due (such as after you pass away).

A: Yes, the property must be your primary residence and there needs to be a large down payment so that there is substantial equity in the home at closing.

A: With a standard reverse mortgage, you already own the home and you are borrowing against the built up equity already in the home. With a reverse mortgage purchase, you are creating the equity by putting down a large down payment. Both programs require that you are at least 62 and that the subject property will be your primary residence.

A: The down payment cannot come from borrowed funds such as a personal loan, credit card advances as an example. Acceptable sources can come from bank accounts, retirement account, CD’s and from documented sale of other assets such as your current home. We have even been able to get a bona fide gift from a family member or the sale of life insurance approved.

A: Yes, just like any mortgage or HELOC, there will be a lien place against your home, however you are the only owner of the home for the life of the loan. This is not a equity share program where the lender participates in the appreciation of your home value over time.