Many homeowners 62 and older consider reverse mortgages as a way to stay in their homes while still having access to extra funds. But what if they need to move out of their home due to health reasons or other life changes? Do they still have options with a reverse mortgage? By learning all of your options, you can make sure that moving out doesn't mean losing access to valuable resources such as those provided by reverse mortgages.
If you have a reverse mortgage and have to move out, here's what you need to know:
Residency Rules For a Reverse Mortgage
After applying for and receiving a reverse mortgage, the rule is rather simple: the home with a reverse mortgage must be your primary residence. Further rules about residency, including how many months out of the year you need to reside in the home, will depend on your exact loan.
Violating residency requirements for your reverse mortgage can lead to the borrower losing the loan and needing to pay it back, and in serious cases, losing the home itself. It is always best to communicate with your lender about changes in your residency, even if temporary. If you are planning a long vacation or will be in the hospital for an extended period, alerting your loan officer can avoid future issues.
What if I Need to Move Out When I Have a Reverse Mortgage?
If you need to move out for any reason, you have several options with a reverse mortgage. The first option is to repay the loan using other resources such as savings or investments. Another option is for someone else, such as a family member or friend, to take ownership of the home and assume responsibility for repaying the loan with the lender’s approval. Lastly, you can choose to sell the property and use some of the proceeds from the sale towards repaying the loan.
It's important that you consult with your lender before making any decisions about selling or transferring your property, as certain restrictions and conditions may apply depending on your individual situation. Your lender will be able to provide more details and help guide you through the process so that it goes smoothly and stress-free.
To learn more about reverse mortgages and to see if you qualify, contact the mortgage loan officers at Hartford Funding LTD.
If you’re looking to apply for a reverse mortgage on Long Island, consider turning to Hartford Funding LTD. We will patiently work with you to offer all the information needed to determine if a reverse mortgage is right for you and then guide you carefully through every step of the application process.
To learn more about our services and schedule an appointment with our mortgage loan officers, call us at (516) 595-7646 or visit our website.