A reverse mortgage is a loan for senior homeowners that uses a portion of the home's equity as collateral. The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance.
All remaining equity is inherited by the estate. The estate is not personally liable if the home sells for less than the balance of the reverse mortgage.
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good answers so far! I think the best thing to ask your lender is do they have experience doing construction loans. They are complicated and there are many ways to do them.There are also non traditional construction loans and builders right now willing to extend terms to increase business. I know of a few builders and private financing sources as well as traditional construction financing . If you have a lender who's experienced they will be able to actually save you the most money long term and they have the resources. If you need help give me a call.... more