Reverse Mortgages questions well answered graded A+

Reverse Mortgages questions well
answered graded A+

Reverse Mortgages - correct answer ✔✔A loan used by qualified homeowners age 62 or older,
who have equity in their homes, but little to no income



This loan allows the elderly to use the equity in their homes to meet the expenses of living, or
tp help pay for home improvements



T or F? Borrowers do not have to repay the loan as long as they continue to live in the house -
correct answer ✔✔TRUE



What are the 3 types of Reverse Mortgages? - correct answer ✔✔1. Single Purpose

2. Home Equity Conversion Mortgage (HECM)

3. Proprietary Mortgages



COMMON FEATURES: the mortgage is payable in full when the home is sold or the last surviving
homeowner dies



Single Purpose Reverse Mortgage: - correct answer ✔✔• Low cost loans offered to low income
borrowers by state and local agencies or non-profit organizations

• Borrowers can only use them for the purpose specified by the lender such as payment for
home improvements or payment of property taxes



Home Equity Conversion Mortgage (HECM) - correct answer ✔✔reverse mortgages regulated
and insured by HUD