A reverse mortgage provides financial security because you do not have to make payments or repay the loan as long as you occupy your home as a primary residence.Thus, the reverse mortgage program enables seniors that may be “real estate rich and cash poor” to unlock the financial potential in their homes, and let their homes work for them. Additionally, the reverse mortgage has no income or credit requirements to qualify.
In general, the reverse mortgage does not become payable until the senior homeowner no longer occupies the property as his or her primary residence.
Thus, the reverse mortgage is simply a loan against the borrower’s principle residence. The borrower retains ownership of the home. If the borrower decides to sell the property, any funds in excess of the payoff amount belong the borrower, as is the case with a regular mortgage or home equity loan.