Who Can Get A Reverse Mortgage

Section 3. Who Can Get A Reverse Mortgage

In general, there are two basic qualifications for reverse mortgage loans:

     (1) you are 62 years of age or older, and

     (2) your home has sufficient equity.

In most cases, your home needs to be free of mortgages or deeds of trust. But, if your home has a small balance due on your mortgage or deed of trust, you may still qualify for a reverse mortgage.

You may notice that nothing is said about having enough income to qualify for the reverse mortgage loan. That is because you do not need to be working or have a regular income in order to qualify. With a regular mortgage loan, you have to show that you have enough income to pay back the loan. With a reverse mortgage loan, you do not need to have any income at all since there are no monthly payments.

You may also notice that nothing is said about your credit history, credit score, or whether or not you have filed bankruptcy. Again, these things do not matter since you will not be making payments.

Finally, your health does not matter either. You do not need to be healthy to qualify for a reverse mortgage.

The bottom line is that with a regular mortgage loan, the lender is looking at you and your ability to repay the loan. With a reverse mortgage, the lender is not looking at you or your ability to repay the loan, but is looking at your home and your home's value to repay the loan when you no longer live there.

This ebook is for general information only and may or may not be applicable to your situation. If you have any questions whatsoever, talk with a mortgage broker or lawyer licensed in your state.

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