The reverse home mortgage amount need not be paid back until the homeowner dies, sells the home or permanently moves out of the home. Most schemes require the homeowner to be of at least 62 years of age. There are no monthly payments to be made and an income is not required to qualify for this type of mortgage.
The disadvantage is that the debt increases and the home equity decreases. But this is not true in all cases. If the value of the home increases over time, the equity would increase. Also if there is only one loan advance and no interest is charged on it, the debt would remain the same.
