Is a Reverse Mortgage the Same as a Equity Line of Credit?

An Equity Line of Credit is not the same as a Reverse Mortgage.

An Equity Line of Credit depends on:

  • Loan to Value.
  • Income.
  • Does not matter age of borrower.
  • Needs to be paid back on a monthly basis.

A Reverse Mortgage.

  • 50-60% of the home value may be borrowed with a Reverse Mortgage.
  • As long as guidelines are being followed, a Reverse Mortgage does not have to be paid back until the home is sold.
  • A borrower must be 62 or older.
  • Qualifications does not look at credit score.
  • Qualifications does not look at employment income.
  • Need to pay back when the property is sold.
  • Loan is insured.

A Reverse Mortgage does not get paid back until the time of sell of the property.

Please check with a Professional Reverse Mortgage Advisor and your Tax Advisor for specific details regarding a Reverse Mortgage.

I hope you enjoy this video series about Reverse Mortgages. If you have any other questions, please feel free to contact us:
Gennaro Faiola, Reverse Mortgage Advisor 916.216.1140
Pam McCoy, RealtorĀ® 916.865.8759

Your Senior Real Estate Specialists (SRES),
Pam McCoy serving Folsom, Granite Bay, Roseville and surrounding areas

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