Find the Best Reverse Mortgages in Billings, MT

Different types of reverse mortgages in Billings

Billings residents can use a reverse mortgage to pay off their mortgage, fund a home renovation, cover monthly expenses, invest, pay health care bills or even buy a home.

The most common types of reverse mortgages in Billings include:

• Home Equity Conversion Mortgage: A Home Equity Conversion Mortgage (HECM) is the most common type of reverse mortgage. A HECM is federally insured, and the cash can be used for anything. To qualify, you must be at least 62, own your property outright or have paid down a large amount, live in the property as your primary residence, not be behind on federal debt, be able to continue to pay property taxes and insurance and participate in a counseling session. You have multiple ways to receive funds, including fixed monthly payments, a lump sum and a line of credit.
• Proprietary reverse mortgage: Proprietary reverse mortgages are reverse mortgages backed by private companies. Lenders of these types of reverse mortgages have their own qualification requirements. Owners of higher-value homes may choose to get a proprietary reverse mortgage because it can have a higher borrowing limit.
• Single-purpose reverse mortgage: Single-purpose reverse mortgages only allow funds to be used for a purpose specified by the lender, like making home repairs. They are the least expensive type of reverse mortgage and the easiest to qualify for. Single-purpose reverse mortgages are offered by local and state government agencies and nonprofits, but they aren’t available everywhere.

Billings reverse mortgage requirements

To qualify for a reverse mortgage in Billings, you generally must meet the following requirements:

• You must be 62 or older (some lenders may have different age requirements).
• You must own your home outright or have significant equity in the home.
• You must live in the home as your principal residence.
• You must be able to continue to pay property taxes, homeowners insurance premiums and other costs associated with owning the home.
• You can’t be delinquent on any debts owed to the federal government.
• For a HECM, you must meet with an approved counselor for an information session.

Reverse mortgage lenders will review your income, assets, living expenses and credit history before determining if you qualify for a reverse mortgage in Billings.

Billings reverse mortgage FAQ

What is the downside to a reverse mortgage in Billings?

Keep in mind, a reverse mortgage is a loan that you eventually have to pay back. As time goes by, interest and fees add up. The loan is usually repaid by selling the home, which affects how much you can leave to your heirs. Before you take out a reverse mortgage, educate yourself as much as possible. Understand all the situations when you might have to repay the loan before you were planning to. Shop around at various lenders. And be wary of reverse mortgage scams.

Who qualifies for a reverse mortgage in Billings?

In general, you must be at least 62, own your home outright or have paid down a significant amount of your mortgage, live in the home as your primary residence, have no delinquent federal debt and be able to afford property taxes and insurance in order to qualify for a reverse mortgage in Billings.

Can a reverse mortgage be refinanced in Billings?

Yes, you can refinance a reverse mortgage in Billings. You might be seeking to refinance a reverse mortgage to take advantage of lower interest rates or because your property value has risen and you want to borrow more, for example. Just be sure you are working with a trusted lender and review the terms carefully.