Reverse mortgages are a great way for retired couples to get extra income. The loan is a great source of income because it does not have to be paid back while the homeowners are living in the home. Reverse mortgages are also easier to qualify for than other loans because they don't require the borrowers to undergo a credit check or have a steady income. Reverse mortgages allow you to use the equity in your home without completely liquidating it by selling it for cash.
Just like every other financial decision, reverse mortgages have some disadvantages. Going in to debt should always be avoided if possible, especially when you are retirement-age. However if you have few to no other options and need more income, a reverse mortgage can be a good option. You can still leave your home to your children after your death, but the loan will need to be paid back somehow. If the money can't come out of your estate, the home will need to be sold.
Qualifying for a reverse mortgage is pretty easy. You just have to be a senior, live in your home, have equity in that home, and not have any outstanding liens on it. Make sure you consider both the advantages and disadvantages of a reverse mortgage before you make any decisions. Some banks require you to go through a financial counseling course before they will give you the loan. The course insures that the borrower knows exactly what reverse mortgage is.