What Is a Reverse Mortgage?
As a senior, your most significant asset may be your home. If money is tight in retirement
, you may be interested in getting a reverse mortgage. Here, we'll discuss everything you need to know about reverse mortgages so you can make the best decision.
Who qualifies for a reverse mortgage?
· Age qualification: All borrowers listed on the title must be 62 years old. If one spouse is under 62, it might be possible to get a reverse mortgage. However, the loan officer will need to collect additional information upfront to determine eligibility.
· Primary lien: A reverse mortgage must be the primary lien on the home. Any existing mortgage must be paid off using the proceeds from the reverse mortgage.
· Occupancy requirements: The property used as collateral for the reverse mortgage must be the primary residence. Vacation homes and investor properties do not qualify.
· Taxes and Insurance: Borrowers must remain current on property taxes, homeowners' insurance, homeowners' association fees, and any other necessary costs related to owning your property.
· Property Condition: Borrowers are responsible for completing mandatory repairs and maintaining the condition of the property.
· Property type: Eligible property types include single-family homes, 2–4-unit properties, condominiums, and townhouses. Co-ops do not qualify.
· Debt: Borrowers must not have any outstanding federal debt you're delinquent on, like an unpaid tax bill.
· Counseling: Borrowers must take part in a reverse mortgage counseling session, so you understand what you're signing up for HECM Mortgage.
To learn more and discuss your options – schedule a call or meeting with Mike Bowers.