The lender is required by The Federal Housing Administration to complete a financial assessment on each borrower to determine the homeowner?s willingness and capability to remain current on their obligations and ensure they qualify. Our professionals will review your credit history, analyze your income and compare it to your expenses to determine your eligibility.
You are required to pay your real estate taxes, homeowner?s insurance and HOA fees (if applicable), as well as continue to make home repairs as needed.
The following types are acceptable:
You must be 62 years of age or older, own your home or have significant equity and occupy the home as your primary residence.
The amount of loan proceeds available to reverse mortgage holders varies by age and other factors, but a homeowner must have a strong equity position to obtain a reverse mortgage.
A number of property types are eligible for reverse mortgage financing: single-family residences, townhomes, condominiums in FHA-approved communities, and 2- to 4-unit multiple-family residences. A manufactured home may be eligible as well if the home is approved by HUD and meets FHA requirements.
Reverse mortgage applicants must demonstrate the ability to maintain their property charges or certain housing expenses. This is typically done by providing proof of income and reviewing recurring home expenses such as property taxes, homeowners insurance, and HOA fees if applicable. It is important to remember that the homeowner is responsible for paying these expenses as well as maintaining the home.
Homeowners who wish to proceed with an application must also complete a counseling session with a HUD-approved counseling agency. The Department of Housing and Urban Development (HUD) provides a list of available agencies based on the property location.
Learn more about a reverse mortgage today!