|A reverse mortgage is a special type of home loan for older Mainers that lets a homeowner convert a portion of the equity in their home into cash — with no repayment until the last surviving borrower dies, sells the home, or no longer lives in the home as a principal residence. Maine seniors can use reverse mortgages for extra income or to pay for home care or other support services.
If you obtain a reverse mortgage loan, the lender pays you — in a lump sum, a monthly advance, a line of credit, or a combination of all three — while you continue to live in your home. You do not have to make monthly payments. You retain title to your home, and the funds you receive may be used for any purpose and generally are tax-free (without other features, like an annuity) and do not affect Social Security or Medicare benefits. Many reverse mortgages have no income restrictions.
A bridge loan is a short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to one year) with relatively high interest rates and are backed by some form of collateral such as real estate or inventory.
Bridge loans are also known as “interim financing,” “gap financing” or a “swing loan.” Maine seniors may use bridge loans to cover up front fees at a senior care community while they are waiting for a home to sell.
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