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Allied Home Mortgage Capital What is a Reverse Mortgage? A reverse mortgage is a loan secured by home equity. The loan need not be repaid until the end of the loan term, which is usually when the homeowner no longer occupies the home as a principal residence, sells the home, or dies. During the loan period, the owner remains responsible for maintenance, insurance and taxes for the home. There are no limitations as to how money from a reverse mortgage may be used. The borrower cannot be forced to sell or vacate the home if the money received from the loan exceeds the value of the home. A surviving spouse who is a co-borrower cannot be forced to sell the house as long as he or she occupies the home as a principal residence. When the borrower dies, the loan balance plus accrued interest becomes due and payable. The heirs may repay the loan and keep the home; or sell the home, repay the loan and keep the balance. If the loan exceeds the value of the property, the heirs will owe no more than the value of the property, and no additional financial claims can be made against the heirs or the estate. Who is Eligible? To qualify for a reverse mortgage, a homeowner (and any co-borrower) must be at least 62 years old, must own a home free and clear (or have a very low outstanding debt), and must occupy the home as their principal residence. Where to Get Help: Approved Reverse Mortgage Counselors According to North Carolina law, if you apply for a reverse mortgage loan you must receive counseling from a state-certified housing counselor who will help you understand the implication of your choice. There is no charge for this service. We can put you in touch with organizations that are HUD-approved Home Equity Conversion Mortgage Counseling Agencies. These counselors meet North Carolinas current requirements for Certified Reverse Mortgage Counselors. For all other mortgage needs please click here.
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