54-12-20. Reverse mortgage defined. For the purposes of this chapter, a reverse mortgage is any nonrecourse loan secured by real property that: (1)Provides cash advances to a borrower based on the equity in a borrower’s owner occupied principal residence; (2)Requires no payment of principal or interest until the entire loan becomes due and payable; and […]
54-12-21. Rules for reverse mortgage loans. A reverse mortgage loan is governed by the following rules, without regard to the requirements set out elsewhere for other types of mortgage transactions: (1)Prepayment in whole or in part, is permitted without penalty at any time during the period of the loan; (2)All advances made under a reverse […]
54-12-22. Reverse mortgage loan payment–Undisbursed reverse mortgage funds. A reverse mortgage loan payment made to a borrower is treated as proceeds from a loan and not as income for the purpose of determining eligibility and benefits under means-tested programs of aid to individuals. Undisbursed reverse mortgage funds shall be treated as equity in a borrower’s […]
