Reverse mortgages provide a sense of financial security for older Americans because they provide a supplement to social security income. Individuals may receive payments on a term, tenure or line-of-credit basis.. No repayment is necessary unless the owner sells the home or moves out. When either of these two conditions is met, the homeowner is then required to pay back the cash they received from the reverse mortgage. This repayment includes interest and other fees. The remaining equity, if any, belongs to the homeowner.

In order to be HUD eligible for a reverse mortgage loan, an individual must obviously own the home in question, must be 62 years or older, own the home outright, or have a mortgage balance low enough so that the mortgage balance can be paid in full at closing with the proceeds from the reverse loan. The individual must also go through HUD approved counseling.

Reverse mortgages can be a great option for older Americans.. The extra income can be helpful to older Americans. For those over 62 who will always stay in the same home the reverse mortgage can be very attractive.