You cannotrent the home and keep the reverse mortgage in place. You can refinance the loan or sell the property,but you may not live in another location and leave the loan on the property while you do not live there. Reply to ARLO John T.
People also ask
Can I finance a rental property with a reverse mortgage?
Reverse mortgages DO allow the borrower to finance their rental property if the property consists of 2-4 units and at least one of the units is being used as the home owner primary residence.
What are the pros and cons of a reverse mortgage?
Reverse mortgages can use up the equity in your home, which means fewer assets for you and your heirs. Most reverse mortgages have something called a 渘on-recourse?clause. This means that you, or your estate, can owe more than the value of your home when the loan becomes due and the home is sold.
What is a reverse mortgage and how does it work?
In a reverse mortgage, you get a loan in which the lender pays you. Reverse mortgages take part of the equity in your home and convert it into payments to you ?a kind of advance payment on your home equity. The money you get usually is tax-free.
Can you get a reverse mortgage on a duplex?
HOWEVER? For example, if you own a duplex (2 units) and you live full time in one of the units and rent out the other one, you can obtain a reverse mortgage for that property, given the other requirements of the loan are met.