Make sure you are at least 62 years old first.
Those Americans currently in retirement, who rely on investments as their source of income, should most definitely consider inquiring about a reverse mortgage. This would allow the homeowner to withdraw a portion of their equity but not repay it until they leave the house. Many people worry about paying off their other expenses, but they don't really know that a reverse mortgage could actually help them with expenses such as health care and property taxes. The only requirement to apply for one: Be at least 62 years old.
Types of Reverse Mortgages
There are three types. If you want to go for the cheaper option, a single purpose reverse mortgage is for you. These are offered by a few state and local government agencies as well as non-profits. Proprietary reverse mortgages are essentially private loans. Lastly, is a Home Equity Conversion Mortgage. These are insured by the federal government and can be used for any purpose, but that purpose must be explained.
Once the homeowner applies, their finances will be checked and ensure that they have a good credit history, and have paid their mortgage on time to ensure that they can pay for this. The beauty of a reverse mortgage is that it does not need to be paid back until the borrower moves out of the house or passes away.
Here is a little more information regarding Reverse Mortgages: