Finance
In Colorado, a 'reverse mortgage' allows older homeowners to:
AA. Purchase a home with no down payment
BB. Convert a portion of their home equity into cash or income without making monthly mortgage payments, with the loan repaid when the home is sold or the borrower leaves✓ Correct
CC. Sell their home and rent it back
DD. Transfer their mortgage to a family member
Explanation
A Home Equity Conversion Mortgage (HECM / reverse mortgage), insured by FHA, allows homeowners 62+ to access their home equity without monthly mortgage payments. The loan balance grows over time and is repaid (plus interest) when the borrower sells the home, moves permanently, or passes away. The borrower must maintain the home, pay taxes and insurance.
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