It is available regardless of your income. You don't make monthly payments because the mortgage isn't due as long as the house is your principal residence. Repayment isn't due until the last surviving borrower dies, sells or permanently moves from the property. You still must pay real estate taxes, utility bills and the like. Unlike a home equity loan, a HUD reverse mortgage doesn't need to be repaid as long as the borrower lives in the home.
Lenders recover the principal and interest when the home is sold or inherited.
The difference is paid to the homeowner or the survivors. A borrower cannot be forced to sell or vacate the property to pay off the loan even if the total of the mortgage payments and interest exceeds the house's value. A borrower who uses the FHA-insured HECM will receive a reverse mortgage amount based on a formula that includes a maximum claim amount. According to HUD, this means the maximum amount you can receive will be determined by the age of the borrower, and the appraised value of the property - or the maximum FHA mortgage amount for your area, if lower. To be eligible for the FHA-insured HECM, your property must meet FHA minimum standards.