Are Reverse Mortgages an Option While on Disability?
The person who asked the question “Are Reverse Mortgages an Option While on Disability?” is a 59-year-old disabled woman who’s having trouble making ends meet, despite collecting Social Security Disability benefits. In their case where they are collecting payments, would a reverse mortgage be a good idea for someone in her situation?
The writers over at the Eagle-Tribune provide the scoop on who qualifies for reverse mortgages and how they can be useful to people who are “house rich and cash poor.” Remortgaging may also be an option but you may need to work out how much money you can loan. With this in mind, you might want to click here for more support.
Like a traditional mortgage, similar to the ones provided by SoFi or similar finance companies, a reverse mortgage allows you to borrow money with part of your home being used as security. The difference is that a reverse mortgage allows you to convert part of the equity in your home into cash without having to pay additional monthly bills. This type of mortgage is not suitable for everyone, but for senior citizens, it is a means to help finance their medical or social care. Reverse mortgages can usually only be found in a small number of banks as mortgage providers and lenders like fhlmc don’t always offer it.
Sadly in this woman’s case, a reverse mortgage isn’t an option. Not because of her condition but because in her state, applicants must be 62 or older. This is often a criterion for reverse mortgages as they are intended for the retired and the elderly. But it is possible to obtain a reverse mortgage while on disability payments so long as all other criteria for applying for such a mortgage have been met. It may be a smart financial move for older disabled people to do this with their home, especially if it is worth a significant amount.
