How to Qualify for a Reverse Mortgage

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How to Qualify for a Reverse Mortgage

Interested in getting a reverse mortgage? You have some requirements to meet at the time of the deal as well as during the term of the mortgage itself:

• Age. The borrowers on the title must be 62 or older.
• Counseling. The borrower must undergo loan counseling in most states.
• Priority. The reverse mortgage must be the primary lien on the home. A senior’s home doesn’t have to be owned free and clear to qualify for a reverse mortgage, but the debt itself must be paid off. This essentially means that you may have an existing mortgage at the time of qualifying but not by the time the reverse mortgage takes effect. You must find a way to pay it off; you can use the proceeds from the reverse mortgage to do this.
• Residence. The home must be the borrower’s primary residence.
• Tax and insurance. The borrower must not be in default on property taxes, insurance premiums, and any condo fees, if those are required.
• Property condition. The borrower must maintain the home and do mandatory repairs. The home must meet Federal Housing Administration standards. The purpose of this is to ensure that it is saleable if or when the time comes to sell it.