How much can i qualify for?

Mickey

To qualify for a reverse mortgage in unted states you need to atleast 62 years of age. That is why i guess that your brother will be able to qualify for a reverse mortgage but you will have to wait for one more year.

The amount one can qualify depends on his age and federal housing administration appraised value of the home.

Hi all,

I just want to add one point.

The location of your home can also have a impact on the amount that you qualify.

T_Miller

Hi Mickey,

Welcome to MortgageFit Forums.

The two basic requirements to qualify for reverse mortgage is that you should be above 62 years of age and you should be living in the home.

As others mentioned that your brother in this case will qualify for reverse mortgage since he is above 62 already.

Reverse mortgage amount depends on the age of the borrowers, the appraised value of the property or the maximum FHA mortgage amount of your area. The formula should be discussed with your lender and your FHA approved housing counselor. The interest rate at the time of closing also counts.

An example can make the reverse mortgage information clearer. Depending on the recent rates the maximum amount that a 65 year old can get is 60% of the home's value and if he is 75 the amount will be 70%.

You should compare the offers of FHA, Fannie Mae and Financial Freedom Plan for the different benefits. Usually it is seen that the FHA is the best mortgage foe lower priced homes.

There are about 125 reverse mortgage lenders in US offering reverse mortgage. Fannie Mae has got a free list of lenders.

So, even if you are unable to qualify now, your brother can immediately qualify and you need to wait for just one more year. Feel free to ask if you have any further queries regarding reverse mortgage information.

God bless you.

For MortgageFit,
Samantha

My step mom is in a jam. She has refinanced her home many times and prently her note is $600. She receives only $575 from Social Security. Her daughter is telling her to do a reverse mortgage. The problem I see, is that she allows three of her adult children to stay with her, and they barely give her any money for this. Should she do a reverse mortgage? Please help.

Hi Marshap,

Welcome to MortgageFit Forums.

It is really shameful on the part of her children who do not help her despite staying with her. I am glad to see your worry for your step mom.

Reverse mortgage is a good option if she does not want to make the monthly payments for her mortgage.

But there are some requirements to qualify for this mortgage. If she is eligible to meet them, then certainly she can opt for a reverse mortgage.

If you can give some more detail about the house she live in and her age and the financial status, then perhaps I can answer you in a more specific way.

God bless you.

For MortgageFit,
Samantha

Hi Marshap,

Amongst other necessities your mom needs to pay off her balance debts to qualify for the reverse mortgage.

Don't worry, she can do it with the cash advance from a reverse mortgage. If the home in which she lives is in her name and it is her principal residence, then she can easily go for the mortgage provided she is 62 or above in age.

James

My mom is 85 yrs old, her house is paid in full. My sister would like her to take out a reverse mortgage to pay for her care and up keep of the property. My sister would also like to protect the property by having my mom do a mortgage insurance so that when my mom passes the reverse mortgage is paid in full and the family inherits the property free and clear.

Does that sound legitimate? I have my doubts, your answers would be greatly appreciated.

Agnes

Hi Agnes,

Welcome to MortgageFit Forums.

I think that your sister is thinking it wisely but some more points need to be looked into. Reverse mortgage is available to your mom as she is more than 62 years old and owns the house as her principal residence.

But one thing you need to consider here is that you are going to loose the equity on the house in the process.

If your mom can't afford the expenses to maintain the house, then she can certainly go for the reverse mortgage.

Mortgage insurance on a reverse mortgage ensures that she or her heirs don't end up owing more than the house is worth and it is usually mandatory.

But once your mom leaves the house the mortgage needs to be repaid to own it.

Please post for any further queries.

God bless you.

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Samantha

My Inlaws are looking at a reverse mortgage. They're in their mid seventies, so they fall into the perfect category of is type of mortgage program. Unfortunately, my husband and I are not in a position to give them the amount of money the bank is willing to give them for the property they currently own. Assuming that both of my inlaws live to a ripe old age and end up in the home until they pass away, would we owe the current market value to purchase the property from the reverse mortgage company? The current value is around $250K and the mortgage is around $80K. Thank you for your input.

Hi Hilary,

Welcome to MortgageFit Forums.

If your in-laws are going to stay in that home as long as they live and they need the money for maintenance or some other purpose, then reverse mortgage is a perfect solution.

The mortgage need not be paid as long as they live in the house. After them to own the house, you have to pay the mortgage to the company.

The insurance in a reverse mortgage gives assurance so that you, as an heir, need not have to pay more than the market value of the house.

But, as heirs you will have to pay off the mortgage, in order to keep the house in your possession. Else the house will pass to the lender.

For more queries, you can post here.

God bless you.

For MortgageFit,
Samantha

Thanks for the quick response, Samantha. So, if the value of the property is $250,000 and the reverse mortgage company pays them $85,000 to pay off their mortgage, my husband would need to pay $250,000 to purchase the property from the mortgage company upon their death?

Hi Hilary,

The amount owed at the end of the loan consists of -

• All the money that have been borrowed and the amount on loan-closing costs.
  
• All the accrued interest on that money including any financed fees which may be up to the loan's non-recourse limit, the fair market value of the home.
  

So it is always greater than the value of the loan taken.

The payments are made generally by -

• Selling the house where either the sale will cover the loan or it will net more than the mortgage.
  
• Any other assets that you may have could be used to pay off the loan
  
• If there is any equity left in the home then the home can be refinanced to pay off the loan.
  

Hope you got your query answered.

God bless you.

For MortgageFit,
Samantha

The loan value that needs to be paid off can be the market value of the property with the interest rate compounding, but that is the maximum value that requires to be paid off.

If the loan balance exceeds the value of the property the excees
repayment is taken care of by the FHA insurance on the reverese mortgage.

Angel

My mother is 84 ownes her home,but took out a 40,000 loan to pay off bills left after my fathers death.I'm 63 and live with her.If she takes out a reverse mortgage to pay off that loan,can I be included in the R M or just her? The house has a value of 120,000. I stand to inherit the house upon her death.Another ? upon leaving the home,how much time is given to repay the R M via selling and or buying said house? Tony

Hi Tony,

All borrowers under the Reserve Program must hold title to the property and as your mother only owns the property you cannot become the joint borrower.