A loan given to homeowners in exchange for equity in their homes. The loan does not have to be repaid until the homeowner dies, sells the house, or moves. Under the FHA's reverse mortgage program, homeowners must be at least 62 years of age, own the property completely or have only a small mortgage, and meet various other conditions to qualify.
Definition from Nolo’s Plain-English Law Dictionary
A loan for homeowners 62 years of age or older who have considerable equity in their houses. Typically, borrowers make no payments during their lifetimes; the loan is paid off at their death, when the house is sold.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:23 pm