Reverse Mortgage Information

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Diamond Bar Reverse Mortgage Question - What are the qualifications for a reverse mortgage?

What are the qualifications for a Reverse Mortgage, do we qualify?

  
California HillsIf you are homeowners and are over the age of 62, you just might.  Some things to know in order to determine whether or not you are eligible.  First - do you have enough equity? The amount of money you can borrower on a reverse depends upon 3 things.  
  • Age of Youngest Borrower.
  • Expected Rate
  • Lesser of the Home Value or FHA Lending Limit. (Currently at $625,500.00, but may be lowered October 1)
It is not the normal 80% of home value, more like 50 to 70 percent. Once you know if you have age and equity on your side, then you need to look to the home itself.
  • Single Family homes in good condition.
  • Some FHA Approved Condos.
  • Some reverse mortgage lenders will loan on Manufactured Homes on owned real property with a permanent foundation.  
Next, take a look at how you hold title.  Are you in a trust? Most, but not all trusts do qualify for a reverse mortgage, however the lender and title company will want to review it before issuing your loan.

What about your credit?  Though income and credit score is not an issue, if you have a tax default, federal debt or another FHA loan there may have some hurdles.  

It's also a good idea to self check your income... do you have enough income to keep up with the property taxes, homeowners insurance and maintenance on the home.  It's never a good idea to delay the inevitable.  If you need to bite the bullet and sell, I'd suggest that you do that rather than have your existing equity eaten away with interest and deferred maintenance.  Sorry to be so blunt, but your quality of life is important to me.

If you have more questions, I’d be happy to discuss it in more detail. You can also talk with aHUD Approved HECM Counselor.  Your questions and comments are encouraged!  If you’d like to ask me a question you can enter into “Comments” or email me at the link to the right.  

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By Deborah Nance

NMLS#202003

Your Local Southern California Reverse Mortgage Professional

How Much Do You Qualify For?

Click the Learn More Button below to email me a question.

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Equal Housing Lender

iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin. 

Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.

Comment balloon 0 commentsDeborah Nance • July 24 2011 01:59PM
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