Not all people and properties qualify for a Reverse Mortgage product. However, the primary qualifications are very straight forward and determining your ability to pursue this type of product is quite simple. Reverse Mortgage eligibility is currently broken down into two criteria, the borrower, and the property. Below are the general guidelines for a quick review.
• At least one borrower needs to be 62 years of age
• Must live in the home as primary residence
• Home must meet minimum FHA property standards
• Any mortgage, liabilities or liens on the home must be paid off with the reverse mortgage proceeds or other assets
• Borrowers must have received the required independent third party reverse mortgage counseling
• Single-Family Homes
• 1-4 Unit Properties
• FHA approved Condominiums
• Planned Unit Development
• Most Manufactured Homes on real property
We do not want to infer that if you meet these criteria then you will be automatically approved. Simple things like cosigning an FHA loan for someone else may eliminate your ability to get a reverse mortgage. These types of issues are rare and quite frankly the main reason it is important to deal with a loan officer that is experienced, and knows the right questions to ask.
Have a question that wasn’t answered here? Please contact me and I’ll get back to you as soon as possible with an answer!