Senior Farmers – You Can Get Reverse Mortgages Too!

You have toiled the land for many years on the family farm and are now finding in your senior years that you just cannot financially stay afloat.  You can get find a solution to this problem by checking out lenders for reverse farm mortgages.  It is a way to keep your farm in the family and still be able to have enough cash to get by each month. 

Reverse mortgages for those individuals that own their own property and are age 62 or older are quite easy to obtain.  For farmers, they work much the same way as for any other homeowner.  The first step in deciding if a reverse mortgage is right for you is to consider what your needs are.  With a reverse mortgage, you will be able to use the equity in your farm without having to sell it or take out, for example, a home equity loan.  As long as you continue to live in your home, it is your primary residence and you meet the age requirements, you will not have to move and you will have more cold, hard cash in your pocket. 

A reverse mortgage is basically a loan against the home you currently live in and, best of all; you will not have to pay back until you move permanently from the home.  The value of your home is what the reverse mortgage loan is based on and you can receive funds is the following ways:

•    In a lump sum, one-time payment
•    As a cash advance, each month
•    As a line-of-credit, taken as needed
•    As a combination of any of the above

Nothing is due on the loan until you leave your home or if you pass away while still living there. 

The basic premise of a reverse mortgage is that you take your home equity out in cash and, over time, your debt increases and the equity in your home  decreases (unless the value of your home is growing at a high rate).  With a reverse mortgage, there is the possibility that at the end of your loan when it becomes due, you may not have any equity left.  But, remember that during the time you have had the reverse mortgage; you have had extra funds (from your home equity) that have been spent-down while you have been able to live in your home. 

Surfing the internet gives you a wonderful opportunity to find suitable lenders for reverse farm mortgages.  There are many programs available for you and it is really something you should check out before selling the farm of your ancestors.  Keep your farm in the family!