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Reverse mortgages are backed by the federal government and are FHA insured. Designed for seniors 62 and older who own and occupy their home, reverse mortgages allow eligible homeowners to access money built up as equity in their home. Benefits of a reverse mortgage include tax-free funds, no loan repayment, no income, medical or credit requirements. The homeowner retains ownership for life, GUARANTEED.
There is no restriction on how the funds from a reverse mortgage are used and the borrower must pay insurance and real estate taxes each year.