What Are The Requirements For A Reverse Mortgage?

What Are The Requirements For A Reverse Mortgage?

Since the Reverse Mortgage for seniors program is all the rage these days, let’s take a look at what is required to qualify for and to get a reverse mortgage. In the United States, a person must be at least 62 years of age and own their home to qualify for a reverse mortgage.

A reverse mortgage allows you to convert the equity in your home into a lump-sum payment, monthly income, or a line of credit. Why would you want to do that? Well, it can be a useful strategy in retirement, if you want some extra income. It’s called “reverse” because it reverses the direction of the payments: instead of building up equity in your house by putting the money in, you actually reduce equity in the house by taking money out.

Like most loans, you will pay an origination fee, appraisal fee, title fee, escrow fee, recording fee, and a monthly servicing fee. These fees can be included in your loan balance, if there is enough equity available. No payments are made on the loan until you no longer occupy the home as your primary residence. When you move or sell your home, the loan balance is due and payable. However, the loan balance is never allowed to exceed the value of your home.

There are things that do not affect eligibility for a reverse mortgage, like Income, Credit History, Discharged bankruptcy and health of the homeowners. You might be asking, How is my equity determined? The allowable equity is calculated based on three factors. First the youngest borrower’s age, Secondly the appraised value of your home and third the FHA maximum loan limit for your country.

To ensure that you enter into a reverse mortgage with your eyes fully open and to ensure that you are not taken advantage of or scammed, there is a Federal requirement that you must obtain financial counseling from a source that is approved by the Department of Housing and Urban Development (HUD). Do not discount this counseling. It is very valuable and can usually be obtained for free or at a very low cost. It is best that you get such counseling from an independent source.

Reverse mortgages have helped hundreds of thousands of homeowners improve their quality of life in retirement. A Reverse Mortgage can help you retire more comfortably. It can provide you with money when you need it most. No Monthly Mortgage Payments, Easy Qualification, Tax-Free Money and No cash needed for closing costs. Can it get any better? If you’d like to find out how much money you qualify for and if you’re eligible, give us a call at (800)630-0650 and we’ll be more than happy to answer all your questions.

Tim Jacobs
Golden Years Mortgage Solutions
Your Money…When You Need It
www.GoldenYearsMortgageSolutions.com
(800)630-0650
tim@goldenyearsmortgagesolutions.com

Tim Jacobs @ Golden Years Mortgage Solutions www.GoldenYearsMortgageSolutions.com  (800)630-0650 tim@goldenyearsmortgagesolutions.com Golden Years Mortgage Solutions is a reverse mortgage approved FHA Lender. We’ve helped thousands of senior homeowners solve their financial problems. Our agents and brokers collectively have over 60 years of experience in Reverse Mortgage Loans and general financial services, including managers who are industry pioneers with more than 12 years of reverse mortgage experience. Our dedication to providing financial solutions for seniors is evidenced by the number of referrals that come from our existing clients.