Finance
A reverse mortgage in Alabama is primarily designed for:
AFirst-time homebuyers with low down payments
BHomeowners age 62+ who want to convert home equity to income without selling✓ Correct
CInvestors purchasing multi-family properties
DBuyers purchasing vacation homes
Explanation
A reverse mortgage (specifically the FHA-insured Home Equity Conversion Mortgage/HECM) allows homeowners age 62 and older to borrow against their home equity. No monthly payments are required; the loan is repaid when the borrower sells, moves out, or dies.
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- Which of the following BEST describes 'private mortgage insurance' (PMI)?
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