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Requirements & Eligibility
Approval
for a Reverse Mortgage is rather easy. While there are no income or
credit score requirements, there are a few basic prerequisites:
To qualify:
* You, and any other titleholder(s) of your home, must be aged 62 or over
* You should have a good amount of equity built up in your home. Your
Live In Reverse Mortgage Expert can help you determine if you have
enough to qualify
* You can pay off your existing mortgage balance at closing with funds from the reverse mortgage or another source.
* Your home must be your principal residence
* Your home must meet HUD's minimum property standards, but you can use
your reverse mortgage to pay for repairs that may be required
* Speaking with an approved reverse mortgage counselor is also
required. The Department of Housing and Urban Development (HUD)
supervises counseling agencies that can work with you in person or more
commonly, over the phone. A Live In Reverse Professional can provide
you with a list of authorized counselors
* Finally, your home must be a single-family residence in a 1- to
4-unit dwelling, or a HUD-approved condominium; some manufactured
housing is eligible, but cooperatives and many mobile homes are not.
You
do not need income to qualify. You can have bad credit or be in
foreclosure. As long as there are no current government liens against
your home, you can qualify.
How Can You Receive Your Payments?
A
Reverse Mortgage allows you to choose how you receive your payments.
The most popular is to establish a line of credit to use when you need
it. You can also choose a single lump sum, regular monthly installments
or any combination of these options.
When Is It Paid Back?
With
this type of mortgage, you will never have to make reverse mortgage
repayments for as long as you live in your home. There are some
circumstances that will cause the loan to mature and the balance to
become due and payable.
Here are some of the most common reasons:
* The last remaining titleholder sells the home
* The last remaining titleholder passes away
Other circumstances that may cause the loan to become due include:
* You transfer the title to another person or entity
* You fail to pay property taxes
* You do not keep the home insured |
