By Tara Siegel Bernard | The Wall Street Journal
Many baby boomers will need to consider how their homes — and the value locked inside — will help finance their retirement years. Reverse mortgages, which essentially allow people to use their home as an A.T.M., could become an integral part of many retirees’ financial plans, especially those who are short on cash but do not want to move.
Right now, practically anyone who is breathing can qualify for a reverse mortgage — no underwriting or credit scores necessary. But that might be about to change.
Most reverse mortgages, which allow homeowners 62 and older to tap their home equity, are made through the Department of Housing and Urban Development, whose Federal Housing Administration arm insures the loans. But declining home prices after the housing crisis took a big toll on the federal program. So did the popularity of one type of mortgage, which allowed homeowners to withdraw the maximum amount of money available in a big lump sum.
