• All at once, in a single lump sum of cash
• As a regular monthly cash advance
• As a "creditline" account that lets you decide when and how much of your cash is paid to you
• As a combination of these payment methods.

No matter how this loan is paid out to you, you typically don't have to pay anything back until you die, sell, or permanently move out of your home. TO BE ELIGIBLE FOR MOST REVERSE MORTGAGES, YOU MUST OWN YOUR HOME AND BE AT LEAST 62 YEARS OF AGE OR OLDER.

- OTHER ELIGIBILITIES

To qualify for the majority of loans, the lender checks your income and see how much you can afford to pay back each month. But with a Reverse Mortgage, you don't need to make monthly repayments. So you don't need a minimum amount of income to qualify. You could have no income and still be able to get a Reverse Mortgage. Also, there are no limits or specifications related to credit scores and open/derrogatory accounts.

- HOMEOWNERSHIP

With a Reverse Mortgage, you remain the owner of your home just like when you had a Conventional Mortgage. So you are still responsible for paying your propery taxes and homeowner insurance, and for making property repairs.

- LOAN AMOUNTS

The amount of money you can get, depends on the specific Reverse Mortgage plan or program you select. It also depends on the kind of cash advances you choose. Within the loan program, the cash amount you get generally depend on your age and your home's value:

• The older you are, the more cash you can get; and
• The more your home is worth, the more cash you can get.

The specific dollar amount available to you may also depend on interest rates and closing costs on home loans in your area.

- DEBT PAYOFF

If you owe any money on your property, the debt must be paid off before getting a Reverse Mortgage or it could be paid off with the money you get from a Reverse Mortgage.  

- DEBT LIMIT 

The debt you owe on a Reverse Mortgage, equals all the loan advances you receive plus all the interest that is added to your loan balance. If that amount is less than your home is worth when you pay back the loan, then you (or your estate) keep whatever amount is left over. When the oposite occurs,  if your loan balance ever grows to equal the value of your home, you can never owe more than what your home is worth at the time you repay the loan. 

Yes, there is a "non-recourse" limit cap on your loan balance, meaning that the lender, when seeking repayment of your loan, does not have legal recourse to anything other than your home's value.

- REPAYMENT

Reverse Mortgages become due and payable when the last surviving borrower dies, sells the home, or permanently moves out of the home.

Lenders can also require repayment at any time if you: fail to pay your property taxes, fail to maintain and repair your home or fail to keep your home insured.

Other default conditions could include: declaration of bankruptcy, donation or abandonment of the property, perpetration of fraud or misrepresentation and eminent domain or condemnation proceedings involving your home.

An "acceleration" clause (makes the loan due and payable) may be included on your mortgage. The following factors could affect the security of the loan to the lender: renting out part or all of your home, adding a new owner to your home's title, changing your home's zoning classification, or taking out new debt against your home.

- CANCELING THE DEAL

After closing a Reverse Mortgage, you will have a 3-Business Day "Right of Recision" period to reconsider your decision. If you decide to rescind, it cannot be done orally, must be in writting.

- LOAN TYPES & COSTS

The most well-known Reverse Mortgage is the HECM (Home Equity Conversion Mortgage). This type of loan will be discussed in detail.

Loan costs can vary. The total true cost of Reverse Mortgage can be difficult to understand and compare. That is why federal Truth-in-Lending law requires lenders to disclose a "Total Annual Loan Cost" for these particular loans.

- TOTAL ANNUAL LOAN COST

The TALC (Total Annual Loan Cost) combines all of a Reverse Mortgage's costs into a single annual average rate.

An explanation of how TALC rates are calculated can be found at http://www.reverse.og/talctuto.htm/ and www.brainshark.com/aarp/HECM_14.