You can determine if you might qualify for a reverse mortgage through the use of a short checklist. In this post, we'll go over the primary qualifications for getting a reverse mortgage.
All Applicants Must Be At Least 62 Years Old
If you are applying for the most common reverse mortgage, the FHA-insured Home Equity Conversion Mortgage (HECM), the minimum age to be listed as a borrower is 62. If you are married, only one has to be 62 in order to apply. The spouse who is younger than 62 will be listed as a non-borrowing spouse (NBS) and, while not on the loan itself, is afforded certain protections and rights associated with the program and control over the home.
The Home Must Be Your Primary Residence
Whether it is the home you currently own or a home you intend to purchase, the home must be and remain your primary residence. This is defined as a home where the borrower maintains or will maintain their permanent place of abode, and which the borrower typically occupies or will occupy for the majority of the calendar year. A person may have only one primary residence at a time.
This is not to suggest you cannot have a 2nd home or a vacation home, but rather you just need to ensure the home on which you have a reverse mortgage, remains your primary residence.
Complete HUD-Approved Counseling
As a mandatory part of the reverse mortgage process and an added layer of education, all applicants and their spouses are required to complete a one-on-one reverse mortgage counseling session with a HUD-approved housing counselor. These sessions can be done by phone or, in many cases, face-to-face.
During your session, the counselor will go over all aspects of the reverse mortgage program and ensure you understand how it works. Once complete, the counselor will provide you with a certificate that allows you to proceed with the reverse mortgage process.
Other Qualifications
We've touched on the primary qualifications but during the application process, you can expect your lender to check your credit history, and income sources and perform a full financial assessment, much like that of any other loan program.
While the qualifications and assessment are unique to the reverse mortgage program and are typically less burdensome than other loan processes, you will still need to meet minimum financial and credit qualifications.
With an introductory call or in-home visit, we can help you determine eligibility and whether or not you might qualify for a reverse mortgage.
Give us a call today, we'd love to chat with you!