If you’re considering a reverse mortgage to help fund your retirement, you may be wondering, “How do I qualify?” To be eligible for a typical reverse mortgage, you must be at least 62 years of age, but for a “Jumbo” reverse mortgage – typically used for high end, premium properties - the age limit can be as low as 55. The younger you are, the less equity you’ll be able to borrow.
In both cases, depending on age, the borrower must generally have 50% or more equity in the home, and it must serve as their primary residence. Additionally, they must keep up with the loan obligations of keeping the home well maintained, and paying property taxes and homeowners’ insurance.
To assure borrowers fully understand this type of loan, they are required to attend a HUD-mandated counseling session with a certified counselor of their choosing who will answer any concerns or questions the borrower may have. In addition, a financial assessment is conducted to ensure the borrower can meet the loan obligations and has not incurred either a foreclosure or a bankruptcy within a certain period prior to the loan. Also, in order to qualify, they must not be found to be delinquent on any federal debt. To find out more about reverse mortgage qualifications, call us today.
