Qualifying for a Reverse Mortgage

A reverse mortgage can help you convert the equity in your home into tax-free cash while retaining ownership of your home. How does a reverse mortgage work? First, you have to meet some basic qualifications.

Here are some basic reverse mortgage rules: A reverse mortgage loan must be the first and only mortgage on the property. Therefore, if there is an existing mortgage, it must be paid off with some of the proceeds from the reverse loan. As the home appreciates and the borrower grows older they may qualify for more money, and the reverse mortgage may be refinanced to borrow more against the increased equity.

The definition of reverse mortgage is that you do not have to make monthly payments. Additionally, you do not need income to qualify for a reverse mortgage, nor are there any credit qualifications.

Find out if you qualify for a reverse mortgage loan—see if you meet the following criteria.

Reverse Mortgage Eligibility

The borrower obtaining a home equity conversion mortgage (HECM) must be:

Be at least 62 years old
Occupy the home as a primary residence the majority of the year
Own the home or have a low enough balance that the existing mortgage can be paid off through the proceeds of the reverse mortgage
Housing and Urban Development (HUD) counseling session over the phone
All individuals on title must apply for the reverse mortgage, attend counseling and sign the loan papers

The following property types are eligible for reverse mortgages:

Single-family, one-unit dwellings
Two to four-unit owner-occupied dwellings
Some condominiums and planned unit developments (please contact the reverse mortgage lender for specifications)
Some manufactured homes

Do you want more information on reverse mortgages to help make the investment in your home last a lifetime? Click here!