With a regular mortgage, the lender makes a lump sum payment to the borrower, who in turn repays it through monthly payments to the lender. With a reverse mortgage, the lender makes a monthly payment to the homeowner who later repays in a lump sum. The reverse mortgage can be particularly valuable for a senior homeowner who does not want to sell, but whose retirement income is not quite enough for comfortable living. The homeowner receives a monthly check, has full use of the property, and is not required to repay until he sells or dies. If he sells his home, money from the sale is taken to repay the loan. If he dies first, his property is sold through the state and the loan repaid.
Reverse Mortgage To Construction Loan