Renting with a Reverse Mortgage

Dear Benny — Can I rent my home if it has a reverse mortgage?

Dear Janet — The short answer is no; a reverse mortgage is limited to people who actually live in their home and are aged 62 or older. Lenders (and the federal government where that kind of loan is federally insured) take a risk that you may live so long that your mortgage balance will be higher than the value of the house. So lenders (and the federal programs that insure those loans) do not want you to be a landlord.

However, in recent months, I have heard that there are a couple of lenders who are willing to provide reverse mortgages to investors. Perhaps you can find such a lender on the Web.

Found here.

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