You just might be eligible for a HUD reverse mortgage.  Those homeowners who are over sixty two years of age and who have either paid off their mortgages or just have a small remaining balance may be able to borrow against the equity they have built up in their homes.  Seniors can elect to receive a lump sum payment, a monthly check for a fixed amount of time, or open a line of credit that they can use when needed.  If your circumstances change you may be able to change your payment plan. 

One thing that makes these mortgages different than other types of home loans is that you will never need to make a payment as long as you live in your home.  The amount of money taken out of the home is recovered by lenders, along with any interest that is owed, at the time the house is sold.  If the amount owed is greater than the final sales price for the house then HUD will pay the difference.  FHA, or the Federal Housing Administration, collects insurance payments from the borrower to cover any potential shortfall. 

There are many different factors that go into determining the size of  mortgage that a borrower may be eligible for.  Some of the factors include the age of the borrower, the interest rate, and the total assessed value of the home.  A larger percentage of the home’s value will be available for older homeowners.  

These mortgages do not have any income or asset limitations associated with them.  The amount that you can borrow will be capped by the maximum FHA mortgage limit for the area where you live.  This will only really impact you if you have a high priced home.   The mortgage insurance offered by FHA will usually make it a better deal than those offered by private lenders.