Reverse home loans involved the use of house equity as a method to get funds. It is generally reserved for older residents who have developed some equity in their home.
Florida has become one of the most popular States in the Union for these type financial instruments, for more information we contacted Eric Christensen Reverse Mortgage Florida Associate.
A home equity conversion mortgage (HECM) is available to property owners in the United States when the equity of the house is greater than the amount left on the first mortgage. The borrower must be at least 62 years of age, and the property must be his or her principal residence. As you can see, this process is very regulated, and equity is legally defined as the value of the house minus what is still owed to the bank.