Of course, few of us have memorized the precise guidelines for the definition of “low income.” Instead, we are likely to use a subjective number, such as $30,000. If your income is below 50% of the median, HUD considers you to have “very low income.” HUD uses these definitions for setting public housing eligibility standards. In 2020, the federal poverty level for an individual is $12,760, and 185% of that figure is $23,606.Īnother definition of low income, used by the Department of Housing and Urban Development (HUD), is an income of less than 80% of the median area income. Different government agencies may have their own guidelines for what constitutes low income.įor example, federal rules classify low-income households as those with income not more than 185% of the Federal Poverty Guidelines. The term low income can be used as a general indication of wealth (or lack thereof) but can also have one or more technical definitions. The amount you receive depends on the equity you have in your home. The payments are tax-free, and you don’t have to repay until you leave your home. In a reverse mortgage, the lender pays you a lump sum and/or monthly payment. These can be an excellent source of cash to help pay for daily living and health care needs.

Seniors of age 62 or older are eligible for a reverse mortgage. A home equity loan usually has a fixed term, whereas a home equity line of credit is a revolving loan facility that may have an open-ended term. These loans depend on the amount of equity in your home and your credit rating. Similarly, there are no age limits for home equity loans or lines of credit.

Nonetheless, a 30-year mortgage may be a good choice for seniors who want to minimize their monthly payments. There is also no prohibition on the length of the term, although some seniors may consider a 30-year mortgage overly long. Federal law prohibits mortgage lenders from discriminating on the basis of age, which means that even a 90-year old can get a mortgage.

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