The accrued equity in your home can help fund your retirement. The four reasons why a reverse mortgage make sense for retirement are:
- No Credit Requirements
A reverse mortgage is not based upon your credit rating. However, your credit history will be checked for state and federal tax liens.
- No Income Requirements
Whether you work or not will not matter or be considered when applying for the loans. The new financial assessment includes a review of residual income.
- Based On Equity
A reverse mortgage is a unique loan because it’s based upon your home’s equity and not your income or credit.
- Repay After You Die
The loan is paid off after your death following the sale of your home. Any remaining funds are distributed to your heirs as per your will.