Generally, to qualify for a reverse mortgage, borrowers must be at least 62 years old. Additionally, they should either own their home outright or have a low mortgage balance, which can be paid off with the proceeds from the reverse mortgage. Eligibility also depends on meeting certain credit and income requirements, which vary by lender. Borrowers must demonstrate the ability to cover ongoing costs associated with homeownership, such as property taxes, homeowners insurance, and maintenance.

The types of homes that qualify for a reverse mortgage include:

• Single-family homes: These are standalone residences.

• HUD-approved condos: Condominiums that meet the criteria set by the U.S. Department of Housing and Urban Development (HUD) are eligible.

• Certain manufactured homes: These must be built after June 15, 1976, and must meet specific standards set by HUD. The home should also be permanently affixed to a foundation.

The amount you can borrow through a reverse mortgage depends on several factors, including:

• Your age: Older borrowers can typically access a larger portion of their home’s equity.

• Home value: The more your home is worth, the higher the potential loan amount.

• Current interest rates: Lower interest rates may allow for a higher borrowing limit.

To get a more accurate estimate, you can use a reverse mortgage calculator, which takes these factors into account and provides an approximation of how much you may be able to borrow.

If you decide to move, you will be required to repay the reverse mortgage. This can be accomplished in several ways:

• Selling the home: Proceeds from the sale can be used to pay off the reverse mortgage.

• Using other funds: If you have sufficient savings or other assets, you can pay off the loan without selling your home.

Keep in mind that moving may also trigger a due-on-sale clause, meaning the loan will need to be repaid in full once the property changes ownership.

No monthly repayments are required for a reverse mortgage as long as you continue to meet the loan terms. This includes maintaining the property, paying property taxes, homeowners insurance, and any necessary maintenance. However, failure to meet these obligations can lead to loan default, which may result in foreclosure.

The application process for a reverse mortgage typically involves several steps:

1. Research and Education: Start by learning about reverse mortgages and evaluating whether it is the right choice for your financial situation.

2. Find a Lender: Look for a lender that specializes in reverse mortgages. You can compare rates, fees, and terms.

3. Counseling Session: Before applying, you must undergo a counseling session with a HUD-approved counselor. This session will help you understand the implications of a reverse mortgage.

4. Application Submission: Complete the application form with the chosen lender. Be prepared to provide personal financial information, including income, credit history, and details about your home.

5. Property Appraisal: The lender will order an appraisal to determine the value of your home, which will affect your borrowing limit.

6. Loan Processing and Closing: Once your application is approved, the lender will process the loan and schedule a closing meeting to finalize the transaction.

Reverse mortgages come with various costs, which may include:

• Origination fee: Charged by the lender for processing the loan.

• Closing costs: This may encompass appraisal fees, title insurance, and other fees associated with finalizing the loan.

• Mortgage insurance premium (MIP): A fee for the insurance that protects the lender in case the loan balance exceeds the home value.

• Monthly service fees: Some lenders charge a monthly fee for managing the loan.

It's essential to review these costs with your lender and understand how they will impact your overall loan amount and financial situation.

Yes, while a reverse mortgage allows you to live in your home without making monthly payments, it does come with conditions. If you fail to meet the loan terms—such as not paying property taxes, not maintaining homeowner's insurance, or neglecting necessary maintenance—you risk foreclosure. The reverse mortgage must be repaid when you move out of the home, sell it, or pass away.