Reverse Mortgage Qualification | HECM Qualification

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Reverse Mortgage Help

Enjoy Financial Independence with Reverse Mortgage

In order for a person to be eligible for a reverse mortgage through HUD, HUD’s Federal Housing Administration requires that the borrower owns a home, is 62 years old or older, and the home is owned outright, or the mortgage balance is low and can be paid off upon closing. The borrower must also live in the home. The borrower is also further required to receive consumer information from counseling services that are approved by HUD from sources prior to obtaining the loan. There are only certain types of homes that are eligible for reverse mortgages. The home must be a dwelling for a single family or contain two to four units that are owned and occupied. Detached homes, townhouses, condominium units and some manufactured homes do qualify. Condominiums, however, must be FHA-approved.

The maximum amount that can be borrowed is based on the following factors:

1. The age of the youngest homeowner.

2. The appraised value of the home.

3. The interest rate on the new reverse mortgage.

Reverse Loan Qualification

The eligibility requirements to obtain a Reverse Mortgage are quite simple.

* At least one homeowner on title must be age 62 or older and occupy the property as their primary residence.

* Any existing mortgage balances must be small enough to be paid off by the reverse mortgage, or the balances must be paid or negotiated down.

* The property must be a: single-family home; two, three or four unit dwelling; Town-homes; detached homes, condominiums, planned unit developments (PUDs) and some manufactured homes are eligible.

* The home must meet HUD minimum property standards and, in some cases, necessary home repairs can be made after the closing of a reverse mortgage.

* There are NO income, employment, savings and minimal credit qualifications (credit scores do not count).