Windermere Re Utah - Park Ave
Jim Kelley, Windermere Re Utah - Park AvePhone: (435) 901-1262
Email: [email protected]

A simple guide to reverse mortgage loans

by Jim Kelley 06/10/2024

Two individuals holding hands

A home is a big investment. As you continue to own a home, it builds equity over the years. This article provides a basic guide of reverse mortgages and how they put the power of your home’s equity back in your grasp.  

What are reverse mortgages? 

A reverse mortgage is a program meant for elders aged 62 and up. It allows them to borrow some of the equity that has built up for their home in the form of a loan. A reverse mortgage lender offers participants to choose a loan type. From there, they can decide if they want a line of credit or lump sum of funding. 

How do you qualify for a reverse mortgage loan? 

To qualify for a reverse mortgage loan, you have to meet these criteria: 

  • Owner of the property bust be at least 62 years old
  • Home must be completely owned or be mostly paid off
  • Must show finances are available to continue paying property taxes
  • Property must be the primary residents 

Once you’ve qualified and been approved for this kind of loan, it’s then time to decide which loan type you’ll utilize. 

Reverse mortgage Types

There are multiple loan types to choose from: 

  • HECMs or Home equity conversion mortgages can be used for almost anything. They are supported by Urban Development and the U.S. Department of Housing
  • Single-Purpose Reverse Mortgages are more affordable. They can be provided by the state and can be used for specific reasons specified by the loan lender. 
  • Proprietary reverse mortgages are not supported by the government. They come with their own requirements for eligibility. These loans are private and easy to obtain. 

Reverse mortgages are helpful for life expenses. Speak with a reverse mortgage lender today to explore your next loan options.

About the Author
Author

Jim Kelley

Originally from upstate New York, I moved to Park City soon after college to spread my wings and explore the western United States, taking full advantage of the world class golf courses, beautiful mountains and the greatest snow on earth. 20 years later I am grateful to still call Park City home.

Client experience is my #1 objective. I have a passion for helping people realize their perfect Park City experience. My 22 years of resort management provided me with tremendous opportunity to work with so many different people from all over the world, delivering the services and experiences they desired and facilitating them to take advantage of all Park City has to offer.

Having played, worked and raised three children in Park City, my knowledge runs deep of the community and its surrounding areas, and all they have to offer. I am confident I can help you to find your next dream home in this wonderful community.