For older investment property mortgage borrowers, there's a certain type of loan they might have overlooked: reverse mortgages.
Reverse mortgages fell out of popularity after the recession hit the U.S. and the housing market collapsed. But as the industry continues to bounce back, owners are starting to give reverse mortgages a second look.
"A mere 14 percent of Americans have considered a reverse mortgage."
To be eligible for these loans, owners must be at least 62 years old, or own their home outright, or be able to pay off their remaining mortgage balance at closing, according to U.S Department of Housing and Urban Development's standards. Reverse mortgages allow homeowners to get cash for the equity in their home if they need money on short notice. This provides a means of insurance for homeowners when other investments - such as those in the stock market - are in a downturn, and it is particularly helpful for those who experience unexpected expenditures and are strapped for cash, according to The New York Times.