Reverse mortgages and home equity loans both use equity as collateral. Home equity loans do not have an age requirement; reverse mortgages require the owner be at least 62. HELOCs must be repaid over time - typically 5 or 10 years; Reverse mortgage payback is generally upon sale or borrower death. Rates on the two may be comparable, but borrowers should shop. Reverse mortgage closing costs are generally higher, but typically, these costs can be financed as part of the reverse mortgage loan.

The types of homes that may qualify for a reverse mortgage include single-family homes 2-4 unit properties, condominiums, townhouses and newer manufactured homes. Co-ops do not qualify. The owner must be at least 62 with enough equity in the home to qualify. Borrower credit and medical status are not relevant to loan payments since you don’t make loan payments on a reverse mortgage. Lenders will assess borrowers’ financial capacity to pay taxes and insurance, and may set aside loan funds 
 to pay these in the future.

A reverse mortgage lends you money against the value owned in your home. Repayment is not required until the home is sold or the borrower dies. Then the loan amount plus interest is repaid by selling the home. The lender has a primary claim a ‘lien’ against the home to secure the loan and interest. Income from the proceeds of a reverse mortgage are generally not taxable. Owners still pay property taxes and insurance

Your credit history will matter in your application for a mortgage. It pays to check it regularly - use annualcreditreport.com - and address errors and issues. Basic factual errors can usually be remedied by writing to the credit bureau; explain the mistake and provide clear evidence that it is an error. If an issue isnt an error, and an explanation would help, you may request to have your own remarks attached. For example, if you missed a payment because of an accident, add that to the record. In the long run — and in the mortgage — the better your credit history, the better your mortgage terms are likely to be.

Like the video states, there are no simple methods with which to enhance your credit history. However, you can work to keep it appropriate by keeping an excellent credit report. Pay your expenses on time. Pay for cards and keep month-to-month financial obligations sustainable. Limitation your general financial obligations, and examine your credit report yearly for precision and remedy any mistakes.

Your credit history will have a direct effect on your mortgage loan. Its in your interest to check your history, and address any issues, as early as possible. Federal law entitles everyone to a free annual credit report. You can request your free credit report at this site: annualcreditreport.com You can also request it directly from the 3 credit bureaus: Trans Union – www.transunion.com 1-800-916-8800 Experian – www.experian.com 1-888-397-3742 Equifax – www.equifax.com 1-800-685-1111 Look for other videos on credit history and credit score here to learn more.

"Well pull your credit." is the bland phrase you might hear from a lender. What does that mean? Three companies — Experian, TransUnion and Equifax — maintain records of peoples debts and payments. They issue a credit score for you, based on this data. From a lenders perspective, the credit score provides a consistent measure to assess the possibility of a borrower defaulting on a loan. Your credit score can directly affect qualifying for a loan, rate and other terms. The better your score, the better your borrowing situation. A good credit score saves you money, which can help you maintain a good credit score. Its worth checking your credit score regularly, but particularly before a big transaction like a mortgage. If there are issues, start addressing them early. This video may help you understand the score; look for other videos here on credit scores and credit history for more.