Have you heard about the concept of the reverse mortgage? What is reverse mortgage and how can it help you avail a huge amount of money without hassles? If you wanted to know about it, then we are here with a quick post to help you out.
What is reverse mortgage?
Even though a relatively new concept in India, it has been there in western countries such as US, South America etc. from a very long time. The scheme allows elderly people to mortgage their asset and earn a regular income against it. The fixed monthly income is disbursed by the lender as long as the youngest spouse is alive. Reverse mortgage is is also known as a mortgage loan in which the borrower receives the loan amount in some installments for a home that he/she owns. It is also referred to as the opposite of the home loan where the borrower would need to pay EMI to the lender.
Reverse Mortgage Eligibility Conditions at a Glance
> Anyone in India who is above 60 years of age and owns a house on their name can apply for reverse mortgage. That said, the applicant should be the sole owner of the property being mortgaged.
> The age of the property should be at least 20 years on the date of applying for the loan.
> The home should be the permanent address/residence of the individual.
> The property must not have been received as a gift and should be self-acquired/made.
> Rented properties or some being used for full or partial commercial purposes are not eligible for it.
Bottom line: The documentation process varies from one lender to another. You can ask your reverse mortgage lender to help in case you lack the required information.
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