Are you wondering about your reverse mortgage eligibility?
A reverse mortgage loan can be a great way to subsidize your income as you approach or enter your retirement years. Before one starts to seriously explore and / or shop for a reverse mortgage, it’s important to ensure that you meet the eligibility requirements in the most basic sense. That way you’re not wasting your time looking into a product that you don’t qualify to get.
Here are the basics when it comes to who is eligible to get a reverse mortgage.
First and foremost, you have to be aged 62 or older (United States).
Second, there are specific requirements for the collateral (your home). For example your home must be one of the following to get a reverse mortgage:
- SFR / Single family residential home.
- Town home.
- Condominium with an FHA / HUD approved homeowner association.
- Double Wide manufactured home (most lenders do this, but not all) built after June 1976.
- Single Wide manufactured home (very few lenders to this, but there are some out there so if one lender tells you know, move on to the next one) built after June 1976.
- Modular homes
- Two to four unit properties.
Thirdly, the home you wish to encumber by a reverse mortgage must be your primary residence.
A fourth eligibility requirement is that there is an equity requirement. Depending on your age, a reverse mortgage lender can lend anywhere from 52.4% of the appraised value of your home to 75% of the appraised value (it moves on a sliding scale with a 62 year old getting 52.4% and a 90 year old getting 75%).
Frequently Asked Questions About Reverse Mortgage Eligibility
Does every borrower have to be aged 62 or older? Answer à If a couple is married, and one spouse is 62 or older and the other spouse is younger than 62, you can do the loan and both spouses can live in the home until they both pass away or move out permanently.
- If my house is free and clear, can I still get a reverse mortgage? Yes, one can still get a reverse mortgage if their home is free and clear.
- If I have a loan on my house, can I still get a reverse mortgage? Yes, one can still get a reverse mortgage if they have a loan on their house now (equity requirements apply).
Obviously, there is more to it, but if you meet these very basic reverse mortgages eligibility requirements, there’s a chance this loan might work for you.
Shawn Lawrence Vaillancourt
NMLS License # 387151 in CA, CO, VA, MD, WA, OR
I also have a staff of reverse mortgage specialists in virtually every other state in America.
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