How Do I Know if I Qualify for a Reverse Mortgage?
Qualifying for a Reverse Mortgage
How do I know if I qualify for a reverse mortgage? That is a common question we receive here at ShopReverseMortgages.com, so we figured this would make the perfect first blog post.
Qualifying for a reverse mortgage is simple if you meet certain criteria. It is likely easier to qualify than one would believe.
In this blog post, we will look at all factors that are necessary to qualify for a reverse mortgage.
Qualification #1: Age
The most important qualification point is your age. You must be at least 62 years old. If the house is owned by two people, you must take the age of the youngest homeowner.
So to answer the question – how do I know if I qualify for a reverse mortgage, if you are over the age of 62 years old that is a great start.
Qualification #2: Home Equity
You must have home equity. For instance, if you are house-rich and cash-poor, a reverse mortgage might be an ideal solution. Even if you have refinanced and have a mortgage, you may still qualify for a reverse mortgage depending on your homes value & mortgage amount.
However, it is important to note after you obtain your reverse mortgage, you must pay off any other mortgage on the property.
Qualification #3: Financial Resources
You must have the financial resources to pay for homeowners insurance, property taxes, HOA fees, etc. If you cannot pay for these items, your reverse mortgage may be declined.
Qualification #4: You Must Live in the Home
You cannot obtain a reverse mortgage if you will not be living in the home. This is a requirement of a reverse mortgage. Therefore, you must intend on living in the home in which you do a reverse mortgage on.
Furthermore, you must live in a single family home, 2-4 unit co-op, town-home, or condominium.
The Bottom Line:
The bottom line is that if you meet the 4 qualification points above, you are well on your way to qualify for a reverse mortgage. Often, it is important to note that everyone has a different financial situation, different home equity, & different types of homes.
So the true answer to: how do I know if I qualify for a reverse mortgage should only be answered by a reverse mortgage specialist.