​Pros of a Reverse Mortgage

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•Allows the homeowner to stay in the home

•Can pay off existing mortgages on the home.
•Simple to qualify for because no minimum credit score and generally no income requirements.
•No monthly mortgage payments are due for as long as the homeowner lives in the home and meets requirements for maintenance and paying property taxes and insurance.

 

​ Cons of a Reverse Mortgage

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•The fees on a reverse mortgage are the same as a traditional FHA mortgage but are higher than a conventional mortgage because of the insurance cost. The largest costs are: •FHA mortgage insurance
•Origination fee
•The loan balance gets larger over time and the value of the estate/inheritance may decrease over time.