A reverse mortgage is a loan available to the seniors. It is also called lifetime mortgage. This is used to release the home equity in the property as one lump sum or multiple payments.  This can be a great help for the seniors who are looking for the extra retirement plans. As far as the HUD reverse mortgage is concerned this can really tap into the equity of the home without any repayment. This can really make the seniors much secured and flexible during the period of retirement.

There are some criteria which you will have to fulfill if you want to be eligible for the HUD reverse mortgage. They are as follows:

1. The first point which is very important is that the home owner should be over 62 years of age.
2. The home must be free from all debts and if there is any mortgage balance then it should be covered by the equity and can be paid back from the equity.
3. You must also make sure that the home is a principle residence. This is really very important.
4. The house must be a single family home and there is should not be more than one to four lodging with one occupied by the applicant.
5. You will also have to make sure that the property should meet the minimum property standards.

The reverse mortgage does not require any repayment during the life of mortgages. This is really the most important feature of the HUD reverse mortgage. Hence there is no asset or income limitation.  However I do believe that you will have keen interest in knowing that what amount you can get and what are the factors which decides how big the amount will be.

The important points which determine how big your amount will be are as follows:

1. The first thing which decides how big the amount will be is that how old the applicant really is. Obviously the more will be your age; the bigger will be the amount.
2. The second thing which is more important is the loan interest rate. The lower the loan interest rate will be the higher will be the amount.
3. I must tell you that there is no hard and fat rule for the home value to qualify for the HUG reverse mortgage. However amount that can be capped depends upon the FHA mortgage limit of that area. This really means that the owner of the high value house cannot get more than those which have the home value inside the FHA limit.

The home owners that are selected can take the money in lump sum or they can go for monthly payment. However you will always find this to be very profitable and helpful.

Tags: criteria for reverse mortgage, how big the amount, hud reverse mortgages