A reverse mortgage is a loan against your home that you do not have to pay monthly payments for as long as you live in the home. In Utah you can refinance a traditional mortgage with a reverse mortgage and/or be paid cash by borrowing the equity in your home.
A reverse mortgage works by using the equity built up in your home. It allows for the equity to be paid directly to you either over time or in a lump sum. A reverse mortgage, unlike a traditional or forward mortgage, has no repayment requirements until you no longer use the home as a primary residence.
There are no minimum income or credit requirement for these loans, but you must be at least 62 years of age to qualify. You must also have some equity in your home to qualify.
Utah Reverse Mortgage F.A.Q
What is a reverse mortgage?
A reverse mortgage is a special loan specifically for seniors. It requires no monthly payments from the homeowner.
How does a reverse mortgage work?
A reverse mortgage utilizes the equity in the home to pay off an existing loan or pay a lump sum to the senior. Interest does accrue similar to a traditional mortgage, but no repayment of the loan is due until the homeowner no longer occupies the property as their primary residence.
Can the bank take my home away or foreclose on my home?
You do not have to repay this loan as long as you live in the home, so there are no mortgage payments to fall behind on. You will be responsible to pay the property taxes, homeowners dues or any hazard insurance required. Once you move from your home the remaining equity in your home belongs to you or your heirs.
Does the bank own my home or take my title from me?
No, the bank does not own your home, you retain title to your home.
How much income do I need to qualify for a Reverse Mortgage?
Since there is no repayment while you are living in the home there are no income requirements. You do not need to be employed to qualify for a reverse mortgage.
Can I qualify for a Reverse Mortgage with bad credit?
Since there is no repayment while you are living in the home there are no credit requirements for a reverse mortgage. You can have great credit, bad credit or no credit and qualify for a reverse mortgage.