Mortgage is an agreement which allows you to borrow some money from bank or person especially to buy houses, apartment, home stay, etc. For nowadays, reverse mortgage is a loan which is available and focused on the retired person who borrow or lend money in the form of annual payments to buy houses. In a reverse mortgage, the owner of the house makes no payments at all and the interest is added to the lien on the property. If the owners receive monthly payments or income, of the available equity percentage for their age, then the debt on the property increases for each month.
If the price of property is increasing after a reverse mortgage is taken out, it is possible for acquiring a second (or third) reverse mortgage over the increased equity in the home. The lender will require the loan satisfied and paid in full before they will offer a loan somewhere else. You will have to be in good standing with HUD as well. Reverse mortgage is a good option for the retired people to get fund for buying houses.
The qualification for a reverse mortgage in the United State is at least 62 years of age. There are no minimum income or credit requirements for applying reverse mortgage. However, there are other requirements and condition which homeowners should make sure that they qualify for the loan before they invest money into the process.