A CHIP Home Equity Plan is a reverse mortgage available exclusively for homeowners age 55 and older secured by the equity in your home. Unlike a traditional mortgage in which you make regular payments to someone else, a reverse mortgage pays you.
How does the CHIP Home Equity Plan work?
What are the advantages of a CHIP Home Equity Plan mortgage?
The advantage of a CHIP reverse mortgage is that you do not have to make any principal or interest payments for as long as you or your spouse live in your home.
Eligible borrowers are given the option of receiving all the money you’re eligible for in one lump sum advance, or you can receive planned advances over a set period of time. You can even combine a lump sum advance at the beginning with ongoing advances over time.
No payments on your CHIP reverse mortgage are required while you or your spouse live in your home. The full amount only becomes due when your home is sold, or if you move out.
You maintain ownership and complete control of your home and will never be asked to move or sell to repay your CHIP Home Income Plan.