Reverse mortgages are similar to regular mortgage loans, except that repayment is not required until the borrower no longer resides in the home.  The borrower and all members of the household must be over 62 years old.  Payouts can be by lump sum, line of credit, monthly fixed amount, or some combination of these methods.  The loan can be repaid at any time, but is most often repaid from sales proceeds when the house is sold.  Under the Agency’s reverse mortgage, borrowers can stay in their home in their home even if the amount of the loan exceeds the equity in the home. 

What types of loans are available to fix up a house?  

The NJ HMFA has two repair loans.  The Refinance Rehabilitation loan lets homeowners refinance an existing mortgage and make substantial repairs as long as more than 25% of the loan proceeds are used for repairs. The other repair loan product is the Home Plus loan which funds a home purchase and up to $15,000 in repairs all in one mortgage loan.