Finance
A Florida homeowner applies for a reverse mortgage. Which statement about reverse mortgages is accurate?
AThe homeowner must be at least 55 years old
BNo monthly mortgage payments are required during the homeowner's occupancy of the property✓ Correct
CThe loan must be repaid within 10 years
DThe homeowner forfeits their title to the property upon receiving the reverse mortgage
Explanation
A Home Equity Conversion Mortgage (HECM) reverse mortgage requires the homeowner to be 62+ years old (not 55), and no monthly mortgage payments are required while the homeowner lives in the property as their primary residence. The loan becomes due when the borrower moves, sells, or dies. The homeowner retains title throughout. HECM loans are federally insured by HUD/FHA.
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