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…………
- 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
- 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.
- 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.