Your qualification or eligibility for a reverse mortgage depends on some simple yet important criteria. Surviving on fixed income with home equity as your only asset? Do you need additional funds on a regular basis? If I am not too wrong in my analysis, perhaps you are the right person to look out for reverse mortgages. However, it is always recommended that you make sure that you do not wish to leave much of the property to your heirs.
Reverse mortgages require you to satisfy the criteria as given below:
Complete profile of a borrower:
1. The property, against which you want to take the reverse mortgage, should be completely owned by you.
2. If there is another borrower with you, then both of you and your co-borrower should be aged minimum 62 years or above.
3. You must occupy the property as your primary residence.
4. There should be adequate equity in your house.
5. In case there are past debts on your home, pay them off prior to taking out the loan or else pay them off right after you get the loan funds.
Type of Property:
Different types of properties given below:
1. 2-4 unit owner occupied dwelling
2. Single unit family dwelling
3. Manufactured homes or Mobile home
4. Townhomes and Condominiums
5. Planned unit developments (PUDs)
However….townhomes, condominiums, mobile homes, modular homes etc. and some other properties often qualify only if they fulfill the preset criteria designed by the FHA. And you have to be the genuine owner of the land in addition to satisfying the criteria set by FHA for mobile homes.
Ever tried to find out what is the best thing about reverse mortgages? to qualify for such loans, you do not require to be a rich man or have a great monthly income or credit. In fact, lenders often do not ask for a minimum income or credit requirement when it comes to qualifying for reverse mortgage.