Reverse Mortgage Qualifications

Lenders now look at the income, assets, monthly expenses and credit history of all reverse mortgage borrowers (much like they do for other types of home equity loans). The financial assessment process is designed to make sure that the applicant can continue to afford property taxes and insurance on their property for the rest of their lives.
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(Borrowers 62+ years of age with younger spouses still meet the reverse mortgage qualifications; the younger spouse is called the “non-borrowing spouse”. HECM loans provide certain protections for non-borrowing spouses.)

Your home does not have to be owned “free and clear” (that is, the entire mortgage paid off) to qualify for a reverse mortgage; however, any existing mortgage or liens on the home must be paid off at the closing of the reverse mortgage. In fact, reverse mortgages are often used to pay off homeowners’ existing mortgages to eliminate monthly mortgage payments. (Homeowners still pay property taxes, homeowner’s insurance and/or HOA fees.)

Will my home meet the reverse mortgage qualifications?

Eligible property types for a HECM reverse mortgage include Single Family Residences (SFR), Town Houses, Planned Unit Developments (PUD), and some manufactured homes.  Condominiums are eligible, but they must go through a FHA approval process if they have not been previously approved.

The amount of money you can receive is determined by the value of your home, the age of the borrower(s) and the current interest rate. A reverse mortgage professional like David Chee will be able to best determine how much money is available to you given these factors.

For a customized quote from David Chee, go to the free quote request form and fill out some basic information. A quote will be sent within 24 hours.

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