Millennium Realty
Donna Coakley-Mcgowan, Millennium RealtyPhone: (774) 287-2060
Email: [email protected]

Reverse mortgages: A basic guide to loan types and requirements

by Donna Coakley-Mcgowan 06/26/2024

Two individuals holding hands

A home is a big investment. As you continue to own a home, it builds equity over the years. This article provides a basic guide of reverse mortgages and how they put the power of your home’s equity back in your grasp.  

What are reverse mortgages? 

A reverse mortgage is a program meant for elders aged 62 and up. It allows them to borrow some of the equity that has built up for their home in the form of a loan. A reverse mortgage lender offers participants to choose a loan type. From there, they can decide if they want a line of credit or lump sum of funding. 

How do you qualify for a reverse mortgage loan? 

To qualify for a reverse mortgage loan, you have to meet these criteria: 

  • Owner of the property bust be at least 62 years old
  • Home must be completely owned or be mostly paid off
  • Must show finances are available to continue paying property taxes
  • Property must be the primary residents 

Once you’ve qualified and been approved for this kind of loan, it’s then time to decide which loan type you’ll utilize. 

Reverse mortgage Types

There are multiple loan types to choose from: 

  • HECMs or Home equity conversion mortgages can be used for almost anything. They are supported by Urban Development and the U.S. Department of Housing
  • Single-Purpose Reverse Mortgages are more affordable. They can be provided by the state and can be used for specific reasons specified by the loan lender. 
  • Proprietary reverse mortgages are not supported by the government. They come with their own requirements for eligibility. These loans are private and easy to obtain. 

Reverse mortgages are helpful for life expenses. Speak with a reverse mortgage lender today to explore your next loan options.

About the Author
Author

Donna Coakley-Mcgowan

Licensed since 1983 Donna is a well known and well respected veteran of the local real estate market. Donna has made her mark as both a manager of a brokerage firm and as an agent. Ms. Coakley McGowan has participated in extensive training in residential real estate and specializes in both Buyer and Seller Agency.   

"I am extremely pleased to welcome an Associate of Donna’s caliber and expertise” said Judy Leonelli, Owner. "I have known Donna for many years and have admired her professionalism and talent for the pragmatic resolution to the difficulties that can arise during a transaction. When Donna is involved you know there will be a successful outcome.”  

Ms. Coakley McGowan has lived in Upton since 1995 and knows the area and all of its attributes. She currently serves the Town of Upton and the Regional School District as Chairperson of the School Committee.  She and her husband Mark and their two children reside in Upton.