reverse mortgage loan. scheme. not come forward to lend under this scheme. This could be due to the long gestation period for recovery and the loan recovery being primarily linked to the death of the beneficiary. house owners above the age of 60 years. If spouse is a co-applicant, then he/she should be above 58 years. This restricts bank lending. residence of the borrower. lucrative for the borrower. Also, the monthly payouts are fixed. There is no provision to increase this amount in case of an emergency or contingency. property. For a senior citizen, this procedure could be tedious and difficult to understand. the residential property, that could affect the security of the loan for the lender. Such changes could be renting out part or entire house, addition of a new owner to the house’s title, or creating further encumbrance on the property. arises as the term gets over. So, if someone lives the term, they run the risk of losing the house if they are not able to repay the loan. owned property as an important family asset to be inherited by the next generation. A reverse mortgage loan may run contrary to this belief.
It is not necessary for the borrower of a reverse mortgage loan to continue for the entire tenor of the loan. One can always prepay the outstanding loan and get the documents released.