Finance
A reverse mortgage allows:
AYounger buyers to purchase with no down payment
BSenior homeowners to receive loan proceeds based on home equity without making monthly payments✓ Correct
CInvestors to purchase multiple properties
DBorrowers to reverse their interest rate
Explanation
A reverse mortgage (HECM) allows senior homeowners (typically 62+) to convert home equity into cash or income without making monthly mortgage payments. The loan is repaid when the borrower moves, sells, or dies.
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