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A reverse annuity mortgage is a specialized type of loan available to homeowners aged 62 or older. Unlike traditional mortgages where homeowners make monthly payments to the lender, with a reverse annuity mortgage, the lender pays the homeowner in either a lump sum, fixed monthly payments, or a line of credit, using the equity in the home as collateral. The loan does not need to be repaid until the homeowner sells the property, moves out permanently, or passes away. It’s a way for seniors to access the equity in their homes without having to sell.

In Virginia, reverse annuity mortgages are subject to certain regulations to protect the interests of seniors. These regulations may include requirements for counseling sessions to ensure borrowers fully understand the terms and implications of the loan, as well as limits on fees and charges associated with the mortgage. Additionally, there may be provisions related to the borrower’s rights to remain in the home even if the loan balance exceeds the property value, ensuring they are not displaced. It’s essential for borrowers to familiarize themselves with these laws and consult with a qualified legal or financial advisor before entering into a reverse annuity mortgage agreement in Virginia.