There are many advantages, or Reverse Mortgage Pros, to consider if you are at least 62 years old:
You can often choose how the cash is paid to you: a single lump sum, a regular monthly cash advance, a line of credit where you decide when and how much of your available cash is paid to you, or a combination of these methods.
Regardless of how the cash is paid out, you normally don’t have to pay anything back as long as you (or any co-owners) live in the home as a principal residence.
There is no required minimum income to qualify (because you don’t have to make monthly repayments).
If you receive more payments than your home is worth (i.e., you “outlive” the loan), you will not owe more than the value of the home, according to the Federal Trade Commission.
Cash advances are typically non-taxable.
You maintain the title to the home (you remain the owner).
If you have a federally-insured Home Equity Conversion Mortgage (HECM), you can live in a nursing home for up to 12 months before the loan becomes due.
Cash advances typically do not affect your Social Security or Medicare benefits.
After the home is sold and the lender fees are paid, any equity left in the home goes to you or your heirs.