You had it all planned out, just when you were going to retire and how much money you were going to have to do it with. Now with everything and everyone losing money instead of making money you are worried that you may not have enough money to live on at all. Look into getting an FHA reverse mortgage.
If you have owned your home for the last 30 years or so and have built up quite a bit of equity and are at least 62 years old you can qualify for an FHA reverse mortgage. Using the equity in your home can help with anything you need it for. The possibilities are endless, medical expenses, investing, vacations, fixing the old place up or anything else you can think of.
If you do your research and find that this type of situation will be to your benefit then check out two or three different lenders that offer reverse mortgage packages and see if you can find one that fits your needs.
The criteria for being eligible to receive this type of loan, in addition to being 62 and having the equity, are continually residing in the home, having the home be your only residence, and agreeing to pay the insurance and the property taxes on the home. Your home also must be completely paid off or be very nearly so. The FHA will take into consideration homes that have very small balances left on the original mortgage if need be.
It is mandatory that homeowners attend an educational session hosted by the FHA to learn about reverse mortgages, other loan alternatives and any and all financial pros and cons of opting for a reverse mortgage.
You will find out about loan limits and that they are based on several things like your age, your home's value and current market trends. This educational session is of course offered before you agree to sign any loan papers or anything so you can then make an informed decision and even talk to family members before making your decision.
The FHA will take care of selling your home when you are no longer living in it, either by moving or your death and any leftover equity will be given back to you or will become part of your estate.
Personally, I do not think there is any reason anyone age 62 or older with a home that is paid off would not elect to have a reverse mortgage. You could benefit so many ways and not have to worry about how you will afford being retired. You can use the money any way you like and still have enough money to live on year after year after you retire.
You can choose to take your money as a lump sum payment or as a line of equity or as monthly payments. You can combine the line of credit and monthly payments, too. that way you can keep some money in reserve to use as you need it to fix up the old homestead. An FHA reverse mortgage may help you stay in your home a lot longer than you had intended after retirement.