A Reverse Mortgage, also referred to as a Home Equity Conversion Loan, can give you a monthly income to supplement your current retirement. This is a federally insured program that is backed by The Housing of Urban Development. The mortgage company must be approved through this agency to provide this program for you. It is designed for the homeowner who is 62 years of age or older who seems to run out of money before they run out of month. You can qualify for this program regardless of your credit history. One of the many benefits to this program is that you will no longer have a mortgage payment but will still own your home.

There are not many requirements for this program. If you are 62 years of age or older and have equity in your home you may already qualify. The lender will also require that you take a counseling session which can be done in person or by phone. The classes are typically an hour long. The counseling session will inform you how the program will fit in your individual situation and will explain in detail how the program works before you make any obligations.

Here is a basic overview of the program. You contact the lender which will take you through an application process. They will get enough information from you and run an analysis of your home to determine its value. The lender will then get your current mortgage information to determine how much equity you have in your home. Once they have this information they will calculate how much you are eligible to receive each and every month for as long as you live in your home. Typically this amount is $1,000 or more.

This program works great for the individual who was not able to save as much as they wanted or needed for retirement. Many of the baby boomers were unable to save because of situations out of there control.