When we discuss reverse mortgage eligibility, we mostly focus on the client. You must be a homeowner who is 62 years or older. You can own your home free and clear or still have an existing mortgage on the home. You must live in the home as your primary residence.
However, there is another part of eligibility that is often discussed on your first call with a licensed specialist. Not only must the potential client qualify, but so must their home as well. For one, the home must be your primary residence, and there must be sufficient equity in the home. Also, your home must be considered an eligible property. Wondering if your home makes the cut? If it is one of the kinds of homes listed below, it will not be eligible for a reverse mortgage.
- Second homes.
- Properties with more than 50 acres.
- Condominium conversions.
- Properties owned by Hawaiian Homelands (HHL).
- Investment properties.
- Commercially or agriculturally zoned homes.
- Homes that are dilapidated or in very poor condition.
- Any properties above four units.
- More than four properties sharing one well.
Don’t forget, even if your home does qualify, it must go through the appraisal process. The appraisal will determine the actual market value of the home. It is important to know the market value of the home because that helps determine how much you will get in reverse mortgage proceeds. If your home appraises low, a reverse mortgage may not be an advantageous option for you.
If you’re still wondering if you home qualifies or you have questions about your specific living situation, it is best to call one of our licensed specialists. They can answer your questions and provide more customized information based on a conversation about your house.
It is important to know that, if your home does qualify and you get a reverse mortgage, you will still remain the owner of your home. That means you get to keep the home you love – and you are still responsible for paying your property taxes, homeowners insurance, and home maintenance costs.