Eligibility & Qualification
Who Is Eligible?
Rick May explains requirements for refinancing or purchasing a new home with a reverse mortgage.
Reverse Mortgage Qualification
A reverse mortgage is a financial tool designed to provide financial relief for homeowners 62 and older. It allows seniors to stay in their homes, eliminate their current mortgage payments, and access a large portion of their home equity – tax-free! Unlike traditional “forward” home loans or second mortgages, no repayment is required until the homeowner(s) no longer occupies the property as their primary residence; as long as the borrower, or a surviving spouse, lives in the home, no monthly payments are required.
Who is Eligible?
- Any homeowner over the age of 62 can apply.
- Borrowers must occupy the home as their primary residence.
- Borrowers need to have at least 50% equity based upon home appraisal.
- There are no health requirements.
Because reverse mortgages are based on your home’s value and your equity in it, and there are only a few income or credit requirements. You’ll need to:
- Demonstrate the financial ability to pay property taxes, insurance, and upkeep,
- Attend a third-party reverse mortgage counseling/education session. Attend in person or if it’s more convenient, over the phone. It usually lasts about an hour and is very informative.
Which Properties Are Eligible?
Watch Rick’s video to learn more about what properties are eligible:
- almost any owner-occupied residence, including FHA-approved condos, as long as the owner occupies a unit.
- Mobile homes or manufactured homes that are not on a permanent foundation are not eligible.