Benefits of a Reverse Mortgage

There are several benefits associated with the Reverse Mortgage. First, there are no income or credit requirements when qualifying for this loan. Second, the borrower has no repayment obligations until the property is no longer his residence. Thus, the borrower may live in the property until his/her death without ever making a payment back to the loan. Third, and perhaps most important, the money received from this loan (the proceeds) is not taxable as income. Lastly, a significant benefit of this loan is the security of knowing that Reverse Mortgages are fully insured under the federal government’s Federal Housing Administration’s mortgage insurance program.

You should consult your tax advisor with any tax-related questions or concerns.