Reverse mortgages are an innovative and increasingly popular tool that allow homeowners aged 62 or older to convert their home equity into tax-free cash*, allowing them to stay in their home and improve their quality of life – with no payments to make as long as they live in their home, and while retaining full ownership of the home.
Reverse Mortgage Facts at a Glance:
- Homeowners 62 and older are eligible
- Borrower retains title to home
- No income or credit qualifications
- Available proceeds are based on age and home equity
- Proceeds may be taken as a lump sum, line of credit, monthly income, or combination
- No repayment required as long as borrower remains in the home
- Repayment capped at value of the home at sale
- Remaining equity after repayment goes to homeowner or heirs
- Most reverse mortgages are sponsored and insured by the Federal Housing Administration.
- Jumbo reverse mortgages are now available for higher-value homes
American Home Bank Reverse is the reverse mortgage lending division of First National Bank of Chester County. American Home Bank Reverse provides reverse mortgage lending services to consumers directly, and through a network of community banks, credit unions and non-profit lenders.
* Consult your tax advisor.
Click here for more information on Reverse Mortgages.