That depends. Are you 62 or older? If so, then yes! There may be options for homeowners 60 and 61 as well. Though a spouse who is not 62 would not be eligible for the reverse mortgage they may be able to remain in the home under the same requirements as the borrowing spouse.
Single-Family Residences, Townhomes, Multi-Family Residences, Condominiums and Manufactured homes are all potentially eligible for FHA financing so long as specific criteria is met. Ultimately an FHA appraisal would confirm all criteria is met.
Absolutely! The reverse mortgage for purchase product was created in 2009. An eligible candidate can now apply their reverse mortgage eligibility towards the purchase of a new home. The borrower would combine their downpayment with the reverse mortgage contribution to match the purchase price of the home.
Yes. This is one of the most important requirements of the reverse mortgage. A homeowner is not required to pay principal or interest for the life of the loan, but the property taxes, homeowners insurance and HOA fees if applicable must be paid on time each month (or when property taxes are due).
The reverse mortgage is a non-recourse loan and so long as the homeowner obligations are met, the loan will remain in place until the last surviving borrower departs the home regardless of home value or loan amount.
All reverse mortgage applicants are required to complete a counseling session with a HUD approved reverse mortgage counselor. This must be done during or prior to the application process and before the appraisal is ordered.
A bankruptcy does not disqualify a homeowner from the reverse mortgage program. There are different requirements for the time elapsed since discharge of the bankruptcy depending on the type of bankruptcy, but it may be possible to obtain an exception for a more recent bankruptcy as well.
In 2015, the FHA introduced requirements to verify that a homeowner meet a minimum income threshold to maintain the financial obligations of the reverse mortgage. The amount varies by household size and by region.
The home does not need to be paid off to obtain a reverse mortgage. Most reverse mortgage holders payoff a mortgage balance when they obtain the loan. We just need to make sure we have enough proceeds available to payoff the existing mortgage. Any additional proceeds would be available to the borrower.
As already mentioned, you may obtain a reverse mortgage on a multi-family property. You must occupy at least one unit as your primary residence and yes, the other units can be rented.
Also mentioned earlier, a manufactured home may be eligible for reverse mortgage financing so long as the home meets HUD guidelines and the homeowner owns the land.