Reverse Mortgage and Credit Repair

A reverse mortgage is a loan that lets the borrowers tap in to their home equity without selling their home. This type of loan is limited to borrowers 62 years of age or older. Essentially, the mortgage lender makes payments to the borrower and the loan is paid back after the borrower moves away or is deceased and the home is sold- the proceeds of the home sale are paid to the lender to cover the loan. Reverse mortgages can be controversial as there are many pros and cons, but for the right person, it may make a lot of sense. An advantage for seniors considering a Reverse Mortgage is that their credit score does not impact their ability to obtain the loan. For example, because the home is the collateral for the loan and the borrower does not pay the lender, a senior who has a low credit score and is working on bad credit repair to repair a credit score, doesn’t have to worry about their credit score about qualifying for a Reverse Mortgage. However, one must remember the credit repair is important for anyone at any age because if you have a low credit score, it could inhibit your ability to obtain a credit card, a car loan… etc.