Q: Do I have to pay income tax on the proceeds?
A: Proceeds received from a reverse mortgage are loan advances and not taxable income.
Q: What is a reverse mortgage?
A: A reverse mortgage is a special type of home loan that allows a homeowner to convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a tradional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD's reverse mortgage provide these benefits, and is deferally insured as well.
Q: Can I qualify for a HUD reverse mortgage?
A: To be eligible, FHA requires that the borrower is 62 years of age or older, own your home and must live in the home. You will receive consumer information from a Kaye Financial Mortgage Senior Loan Advisor, who will also review your goals and objectives in order to come to a plan which best meets your needs. There are NO credit, NO income and NO health requirements.
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Posted by Ted Cantu on March 29, 2008 - for more information visit us at http://www.kayereverse.com