Learn More About Reverse Mortgage Loan

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REVERSE MORTGAGE

• A reverse mortgage loan is a unique credit option.

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Introduction to Reverse Mortgage

• In a reverse mortgage, the lender uses the equity
  of your home as security to provide you with a
  tax-free loan. As it is used by older homeowners
  to receive income from the equity in their home
  to be repaid when they no longer occupy the home.
  

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Features of Reverse Mortgage Loan

• Nature of loan payment - A borrower can choose to
  receive the loan amount in one or more lump-sum
  payments, periodic payments (monthly, quarterly,
  semi-annually, or annually), and/or a committed
  line of credit.
• Repayment of loan - One of the reverse mortgage
  benefits is that a borrower does not compulsorily
  need to repay the loan in their lifetime.
• End-usage restriction - One key point where a
  reverse mortgage loan is distinctive from a loan
  against property is the entailing of end-usage
  restriction. In the event an individual chooses
  to avail of a lump sum, it can only be on account
  of medical emergencies.

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Who Are Eligible for Reverse Mortgage Loan?

• The applicant must be an Indian citizen above 60
  years of age.
• In the case of joint applicants a married
  couple one of them must be above 60 years of
  age while the other must be above the age of 55
  years.
• The property to be mortgaged must be a
  self-acquired, self-inhabited residence.
  Therefore, an individual cannot mortgage a
  residential property that he/she has inherited or
  received as a gift.
• The mortgaged property should possess a minimum
  of 20 years of residual life.

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Reverse mortgage benefits is that it ensures
financial well-being in old age and provides
monetary independence to senior citizens. It does
not create immediate financial liability on the
borrower as he/she does not need to repay the
loan amount in EMIs.
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Debt consolidation
Living expenses
Home improvements
Helping children with college
Buying another home that might better meet your
needs as you age
Reverse Mortgage Finance your
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