| A FHA reverse mortgages are available to | | | | equity is available. |
| homeowners who are at least 62 years of age and | | | | The funds can be disbursed in many different ways |
| who own the home in which they live. This financial | | | | and tailored to the needs of the borrowers. The |
| product can help seniors who do not have sufficient | | | | different disbursement options include a lump sum, a |
| income to meet their monthly needs, but do have | | | | line of credit, monthly advance, or a combination of |
| equity in their home. The FHA reverse mortgage | | | | these options. The funds received from an FHA |
| works by liquidating that equity in order to eliminate | | | | reverse mortgage can be used however the |
| monthly mortgage payments, disburse payments to | | | | homeowners wish. Common uses for the money are |
| the homeowner, or both. Provided that the | | | | to supplement monthly incomes, to finance health care, |
| homeowners remain current on their obligations, the | | | | and to eliminate other monthly expenses, but there are |
| homeowner is not required to repay any of the loan | | | | absolutely no restrictions on the use of these funds. |
| balance until they no longer occupy the home. | | | | Could the FHA Reverse Mortgage Affect my |
| An FHA Reverse Mortgage Can Make Retirement | | | | Government Benefits? |
| Comfortable | | | | Depending on the type of assistance a homeowner |
| A common misconception about this product is that | | | | receives, an FHA reverse mortgage could affect their |
| homeowners must own their homes free and clear in | | | | eligibility to continue receiving it. Though the existence |
| order to utilize this product. The truth is, one of the | | | | of this financial product itself does not affect any |
| main uses of this financial product is to eliminate | | | | eligibility requirements, the funds a homeowner |
| monthly mortgage payments. Without the burden of | | | | receives from this product could. |
| monthly mortgage payments, homeowners have extra | | | | If a homeowner receives an entitlement-based benefit, |
| cash available to help maintain or improve their | | | | this financial product will not affect their eligibility. |
| standard of living. While there are no monthly | | | | Federal entitlement programs in the United States |
| mortgage payments required, as long as at least one | | | | include Social Security and Medicare. These programs |
| homeowner remains using the home as their primary | | | | are both based upon factors such as the recipient's |
| residence, homeowner's insurance, real estate taxes, | | | | age and job history and, therefore, will never be |
| and home repairs continue to be the responsibility of | | | | affected by an FHA reverse mortgage. |
| the homeowner. | | | | Programs such as Medicaid and Supplemental Security |
| How Can the Funds from an FHA Reverse Mortgage | | | | Income are considered need based and could be |
| Be Used? | | | | affected by the proceeds from this financial product. In |
| If the homeowner has enough equity, he or she can | | | | order to be certain that this product will not affect any |
| not only eliminate monthly mortgage payments, but | | | | federal or state benefits, home owners should speak |
| receive additional funds from this financial product The | | | | with their caseworkers about the potential implication |
| amount of the additional funds will vary based upon | | | | of receiving money from an FHA reverse mortgage. |
| the home's value, homeowners' ages, and how much | | | | |