In addition to the traditional reverse home mortgage that is available to borrowers age 62 and older, there are also alternative reverse mortgages that offer more flexible terms for borrowers that may not yet qualify for a traditional home mortgage. These alternatives function like a reverse mortgage in many ways but have a distinct difference - they give the lender a percentage stake in the home which goes to them at the time of the home sale in exchange for the up front money the lender gives to the borrower today.
One of the things that you always hear about the reverse mortgage is that it is very important that you know what you are getting in to when you get this type of loan. The same is at least as true, if not more so, with reverse mortgage alternatives. That's because there are some significant drawbacks and considerations that have to be looked at and understood before you can determine whether or not the reverse mortgage is a good thing.
Learn more about reverse mortgage alternatives and how to weigh their pros and cons here.
Question of the Day: What would be your biggest concern when getting a reverse mortgage alternative loan?
