Designed for the senior citizens, reverse mortgage helps in tapping home equity that belongs to you and get a loan against it. Basically, there is no hassle of monthly payments and you get a good amount upfront. This mortgage is administered by the Federal Housing Administration and is better known as the Home equity conversion mortgage. As an older citizen, you get access to a said cash flow on a monthly basis. To qualify for this mortgage in the country, one must be 62 years and above and this mortgage only covers primary residences and not fancy and luxury houses.

Since you are entitled to get a stipulated cash flow on a monthly basis, paying property tax, homeowner insurance and mortgage insurance premium is no exception. This part is carefully administered by the lenders to ensure and confirm that you have the ability to pay and if not, steps are taken to keep a certain part of the equity for payment. To apply for this scheme, the residence must qualify and meet FHA minimum requirements. One of the most important facets of this mortgage is the growing loan balance that you owe, which equally depends on the interest rate. It’s perfectly fine for someone who does not wish to pass the property or preserve investments during retirement, provided there is enough equity. You have to ensure that you are not moving out until you pay off the mortgage balance by whatever means. Do not avoid any obligated taxes to pay during the tenure so to avoid any signs of foreclosure.

You can get the reverse mortgage funds in the form of a lump sum amount, monthly payment during the loan tenure, term payments for a certain period of time and take as much is needed or otherwise through line of credit. This mortgage is meant for families with limited income to take care of their monthly expenditures and bills and pay for healthcare. Essentially, one has to keep the residence and not sell or pass so to ensure payments from the lender.

If you are looking for reliable lenders that provide reverse mortgage, do not get carried away by flashy ads. The lender reputation matters the most and you could probably crosscheck from the National Reverse Mortgage Lenders Association. Ideally, the lenders must have authentic information in their website and access to easy and user friendly online pre-qualification app. Some of the best lenders in the market are

• Lionbridge Financial
  They offer a variety of reverse mortgage options with major focus on long-term payments.
• Reverse Mortgage Funding
  For the ones who want to move into smaller homes, this is a perfect go.
• HomeBridge Financial Service
  Offers the easiest, simple and trusted home financing mortgage.
• One Reverse Mortgage
  The best in the industry for its apt service and variety of payments options
• Finance of America Reverse
  Perfect for your retirement plans to help diversify your money through reverse mortgage
• American Advisors Group
  Focus is largely on home equity
• Lending Tree
  Work with multiple trusted lenders to give you the best possible rate