With a reverse home mortgage, the lender pays you either one lump sum, establishes an equity line, or distributes monthly payments for the rest of your life. While a reverse home mortgage allows you to retain your home and secure your finances during old age, there are certain qualifications that need to be met before qualifying for a reverse home mortgage.
There are two major requirements to qualify for a reverse home mortgage. First you must be at least 62 years of age (it is still possible to qualify for a Reverse home mortgage if both husband and wife are applying and only one is 62 or older. On the other hand, at a later date it is possible to refinance and add the other borrower). Generally, the longer the life expectancy, the smaller the loan for which you would qualify; conversely, the shorter the life expectancy, the larger the loan amount for which you would qualify.
The second major requirement for qualifying for a reverse home mortgage is you must own your home and occupy it as your primary residence. The home must have been your primary residence for at least half a year. The type of home also plays an significant role in your qualification for a reverse home mortgage. A reverse home mortgage is available for single-family homes, buildings with one to four units, condos, and mobile homes (the land occupied by the mobile home must be owned). Cooperative units (Coop’s) or public housings are not eligible for reverse home mortgages.
The amount of the loan for which you would qualify is determined by a combination of your age, the value of your home and your zip code .Your home need not be paid off to qualify, but your current loan would have to be paid off up to the amount of loan for which you could qualify. If the loan amount you qualify for is less than your current mortgage, you could choose to apply later or come up with the amount of money that you are short.
With reverse home mortgages, your income level and repayment capabilities are not significant. Employment and credit rating is not considered in applying for a reverse home mortgage.
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