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Are you eligible for a reverse mortgage?

Posted on: 26th Mar, 2004 03:47 am
If you are living on fixed income with home equity as your only asset and need additional funds on a regular basis, you may be the right person to look out for reverse mortgages. However, make sure that you don't want to leave much of the property to your heirs.

Reverse mortgages require you to satisfy the criteria as given below:

Borrower's profile:

  • You and your co-borrower, if any, should be aged 62 years or above.

  • You should be the owner of the property against which you intend taking the reverse mortgage.

  • You should occupy the property as your primary residence.

  • There should be enough equity in your home.

  • If there are past debts on your home, pay them off prior to taking out the loan or else pay them off right after you get the loan funds.

Property type:

  • 1 unit single family dwelling

  • 2-4 unit owner occupied dwelling

  • Condominiums and townhomes

  • Planned unit developments (PUDs)

  • Mobile home or manufactured homes
However, properties like townhomes, condominiums, mobile homes and modular homes often qualify only if they meet the criteria set by the FHA. For mobile homes, one has to own the land in addition to satisfying the criteria set by FHA.

The best thing about reverse mortgages is that you don't need great income or credit to qualify for such loans. In fact, lenders don't ask for a minimum income or credit requirement when it comes to qualifying for reverse mortgage.

Related readings
I have no equity in my home, can a Reverse Mortgage work for me.
Posted on: 08th Feb, 2011 10:08 pm
Yes, but you'd have a "shortfall". That means you don't have enough equity for the Reverse Mortgage to work by itself, and you'd have to contribute money.
Posted on: 09th Feb, 2011 08:11 am
IAM 63 & OWN 2 ACRES OF LAND & AN OLDER MOBILE HOME; I HAVE A CLEAR TITLE ON BOTH-ZERO BALANCE? CAN I GET A REVERSE MORTGAGE?
Posted on: 28th Feb, 2011 09:43 am
To qualify, your Mobile Home must be manufactured after June 15, 1976, and be on a HUD compliant foundation. You can have the foundation installed if you don't already have one - the cost is approximately $4,000.00 and can be paid from the proceeds of the loan.
Posted on: 28th Feb, 2011 09:51 am
I will be 62 in September. I purchased my home 1n 1984 before my marraige to my current husband. My name is the only one on the title. He is 58. Can I still qualify for a reverse mortgage?
Posted on: 30th Jul, 2012 09:33 am
Hi katie!

Welcome to forums!

As your husband is not on the property deed, you can easily apply and qualify for a reverse mortgage.

Feel free to ask if you've further queries.

Sussane
Posted on: 31st Jul, 2012 12:46 am
Yes, but if I was him, I'd be concerned about that combination - if you die before he does, the Reverse Mortgage will become due and payable.
Posted on: 31st Jul, 2012 07:59 am
I am 58 and my husband is 74...my husband has had several health problems...2 strokes ect and cannot work...do we qualify for a reverse mortgage
Posted on: 15th Dec, 2012 02:02 pm
Yes, but only your husband can be on Title, and that's risky. If he Passes away before you, the Reverse Mortgage will become due. Do you have enough reserves for that purpose? Or does your husband have a life insurance policy you can use for that purpose?
Posted on: 15th Dec, 2012 02:18 pm
Can I qualify for a reverse mortgage in Tennessee if I had a Ch 7 bankruptcy (discharged one year ago)?
Posted on: 17th Jan, 2013 07:32 pm
You should be able to - I originated a Reverse Mortgage a few years ago whereas the homeowners just had their bankruptcy discharged. HUD doesn't have a problem with it, but a Lender might, depending on who they sell their loans to on the secondary market.
Posted on: 18th Jan, 2013 10:27 am
My husband is 75 and I am 55. My husband is paying a mortgage on our townhome in NC. I am not on the loan. Does my husband qualifiy or do I have to be 62 before he qualifies?
Posted on: 12th Feb, 2013 09:58 am
In that scenario you'd be a non-borrowing spouse. Have you ever been on Title before? If "no", you can do a Reverse Mortgage as a non-borrowing spouse. If "yes", you must wait for both of you to be at least 62.
Posted on: 12th Feb, 2013 01:40 pm
Welcome dianemazza,

A similar query has been replied to in the given page:
http://www.mortgagefit.com/Mortgage-Basics/reverse-mortgage-age-requirements.html . Please take a look at it. I hope it will help you.
Posted on: 12th Feb, 2013 09:15 pm
I own my home but it sits in a large community of homes where the land is leased for ninety-nine years. Can this type of property qualify for a reverse mortgage? These are not manufactured homes.
Posted on: 10th Apr, 2013 06:49 am
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