So you’ve done your research to learn about reverse mortgages, and you’re ready to take the next step – seeing if you qualify. While speaking with a licensed specialist is the best way to see if you qualify, there are some requirements that aren’t based on each individual. Knowing these will help you find out if you’re eligible now. These requirements include your age, how much equity you have in your home, the kind of home you own, and your finances.
Age: In order to get a reverse mortgage, you must be a homeowner who is at least 62 years old.
Equity: In order to get a reverse mortgage, you need to have a sufficient amount of equity in your home. The amount of equity available differs from each person and depends on home value, age, etc. To get a better idea of whether you have enough equity in your home, try running the numbers on our online calculator.
Home: There are certain homes that do not qualify for a reverse mortgage. These include mobile and manufactured homes, condo co-ops, and buildings with more than four units. The home must also be in good condition and be the primary residence of the borrower. That means the borrower must live in the home more than six months out of the year.
Finances: Some other qualifications to consider include your financial situation. You can get a reverse mortgage if you need the money right away or if you do not need any money at the moment. You can also get the loan whether you have a mortgage or you own your home free and clear. However, if you know that you are not able to uphold the financial responsibilities of your loan – staying current on your homeowners insurance, property taxes, and home maintenance costs – you may not qualify for a reverse mortgage. If you are not sure whether you can uphold your obligations or not, our licensed experts can help determine that. Not only will they talk with you about your financial situation, they will also review your credit history (a qualifying credit score still does not matter) to make sure you are in the position to succeed with your loan. There may be another option that may still allow you to qualify in which we take a portion of your loan proceeds to put into a set aside to pay those property taxes and homeowners insurance.
Whether you meet all of the above requirements or are still unsure, the next step is to speak with a licensed specialist to dig into your specific situation more. Learning more about you will help them customize the program to meet your needs and goals.