A reverse mortgage is a worry free way of getting income, so if you are able to get a reverse mortgage, that would be ideal if you need a source of income, or an additional source of income without needing to work. However, you must be at the age of 62 or older because the idea is that you should not live longer than the term of the reverse mortgage. You will also need to either have your house fully paid off, or you will need to have enough equity in the house to finish paying off your house at closing, and then live off the rest of the equity.
The good news about a reverse mortgage is that you cannot outlive the reverse mortgage since lenders cannot sell the home until there is no one left in the home. It is therefore a worry free source of income until the last homeowner either passes away or moves out as long as they keep up with taxes, insurance, and other such costs to keep up with the maintenance of the house. If the lenders get less than the amount of money used from selling the house, it is their loss, not the loss of the estate. Therefore, assets from the estate are safe, and will remain with the estate. In fact, any extra money made from selling the house (after lenders take out the low interest rate charged) will go back to the estate, not to the lenders.
Most houses qualify for a reverse mortgage, but if you have a mobile home that was built more than 30 years ago, or you don’t own the land it sits on, or the mobile home lacks a foundation, then your home would not be eligible for a reverse mortgage. Some condos and townhomes, however, may qualify.
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