Using a reverse mortgage to pay the real estate taxes

Senior citizens struggling to pay their real estate taxesA reverse mortgage is a federally insured home loan that was signed into law by President Reagan on February 5, 1988. Over 70,000 senior citizens take advantage of the reverse mortgage program each year! One the benefits of a reverse mortgage is that the proceeds can be used to pay the real estate taxes. This option can keep senior citizens in their home longer and can relieve the family from additional expenses. The maximum lending limit is $636,150.

Frequently Asked Questions about Reverse Mortgages

Are there monthly payments?
No. And that’s the benefit of a reverse mortgage. You are not required to make a monthly mortgage (loan) payment to the bank. You will still need to pay the homeowner's insurance and real estate taxes, however, that's the reason for the reverse mortgage . . . to pay the property taxes.

Can I be rejected for a reverse mortgage?
No. There is no income or credit qualification for a reverse mortgage

Can I pay off my existing mortgage or home equity loan with a reverse mortgage?
Yes

Does a reverse mortgage affect Medicare or social security?
No. The reverse mortgage does not affect regular Social Security or Medicare benefits.

How much can I get with a reverse mortgage?
The total amount you can obtain depends upon your age (or the age of the youngest spouse, if married), appraised home value, current interest rates, and the FHA lending limit, which is currently $636,150.

How old do I have to be for a reverse mortgage?
At least 62 years old

What are the payment options with a reverse mortgage?
Proceeds of a reverse mortgage can be disbursed as a lump sum amount, fixed monthly payments either for a set term or for as long as you live in the house, as a line of credit, or a combination of these. The line of credit is a great way to pay those painful property taxes. Just use the line of credit option to make the real estate tax payment.


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