Reverse mortgages can get seniors out of mortgage credit jams. If you are 62 or better and have substantial equity in your home, you could pay it off with a Home Equity Conversion Mortgage (HECM). You could kiss your mortgage payments (and your foreclosure worries) goodbye with this FHA home loan.

How does this work? Well, many seniors have homes that are paid for or nearly paid for, but they often don't have much income. And if you have insufficient income, it's easy to find yourself in difficulty making your mortgage payments. And then your credit rating suffers and soon you can't qualify for any kind of mortgage help. So what can you do?

  1. Invite all of your relatives to move in and pay rent!?
  2. Ebay the heirlooms that have been in your family for centuries?
  3. Sell your cars and hitchhike to the grocery store?
  4. Spend 16 hours a day clipping coupons?
  5. Burn your furniture in the winter to avoid heating bills?
  6. Revert to your college days and eat nothing but Spam and peanut butter?

Of course you don't want to do those things--you've worked hard and deserve a higher standard of living than that. And there may be a solution. The HECM can be used to pay off your existing mortgage and perhaps even give you some extra cash. The amount you'd be eligible for depends on how much your home is worth, how much you owe, your age, and current interest rates. You could end up with no mortgage payment, and even with some extra monthly income too..

AARP has a reverse mortgage calculator that can show you how much mortgage you'd be eligible for. If it is enough to at least pay off your current mortgage, look into qualifying. HECM loans are different in that bad credit does not stop you from being approved and people with bad credit don't pay higher interest rates than those with good credit. Look into a reverse mortgage today; kick out your relatives tomorrow!