10 How to Qualify for a Reverse Mortgage

It’s easy to determine if you qualify for a reverse mortgage. The basic requirements are:

1. You must be at least 62 years or older.
2. You must reside in the home as your primary residence.
3. You must have sufficient equity in your home.

Additional requirements:

Primary lien: A reverse mortgage must be the primary lien on the home. Any existing mortgage must be paid off using the proceeds from the reverse mortgage. (Reverse mortgage proceeds can be used,) 

Taxes and Insurance: You must remain current on your real estate taxes, homeowners insurance, and other mandatory obligations, including condominium fees, or you are susceptible to default.

Property Condition: You are responsible for completing mandatory repairs and maintaining the condition of the property.

Conveyance of the mortgaged property by will or operation of law to the estate or heir after mortgagor's death: When a reverse mortgage becomes due and payable as a result of the borrower's death and the property is conveyed by will or operation of law to the estate or heirs (including a surviving spouse who is not on title and therefore not obligated on the HECM note) that party (or parties if multiple heirs) may satisfy the HECM debt by paying the lesser of the mortgage balance or 95% of the current appraised value of the property.

Advantages of your new Reverse Mortgage:

• You will not be required to make a mortgage payment to your reverse mortgage in order to qualify to live in your home as long as it is your primary residence. You will still be responsible for property taxes, insurance and repairs to the home.
• People with or without a current mortgage can qualify.
• Reverse mortgages are insured by the Federal Housing Administration (FHA) and are called Home Equity Conversion Mortgages (HECMs).
• Income and credit are not factors to qualify for a reverse mortgage – currently only your age and the value of your home will determine your proceeds.

 See more about qualifying