Disadvantages Of A Reverse Mortgage


Disadvantages Of A Reverse Mortgage

There are some disadvantage of reverse mortgage.  We know that Reverse mortgage is a special type of mortgage that allows the seniors who are above 62 years of age to borrow money against their home equity and instead of making monthly mortgage payments; you can get the money on monthly basis or a lump sum. And the best thing is that the income is Tax deductible. But there are some Disadvantages Of A Reverse Mortgage.

Eligibility standards to get approved for a Reverse Mortgage:

*You should be above 62 years of age.

*Your Hose should be free and clear from mortgage or any other liens.

*Your house should pass the minimum standards set by HUD

There are some Disadvantages of A Reverse Mortgage too as I have mentioned at first and the disadvantages of reverse mortgage are…………

  1. The entire process of getting a reverse mortgage is very expensive. You will have to pay so many fees like application fees, closing costs, appraisal fees, insurance, credit report fees
  2. The money that you are getting from a reverse mortgage is tax free but it may affect your eligibility to get the Federal assistance like Medicaid, Supplemental Social Security Income (SSI) and Medi-Cal benefits.
  3. If you are in a dire condition and need money urgently then you can even sell the house instead of getting a reverse mortgage if you are getting good value of your property.

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