When you’re considering a reverse mortgage for yourself or a loved one, the first step is to determine if the eligibility requirements are met.
You are eligible for a reverse mortgage if you meet the following criteria:
- You are at least 62 years old, or will be at the time of closing. If you are 62, but your spouse is under the age of 62, you would need to discuss this scenario with us to understand the consequences, should your spouse outlive you.
- You own a single family residence, condominium*, townhome, manufactured home*, or up to 4 unit property as your primary residence. Mobile homes that don’t have a permanent foundation do not qualify for reverse mortgage financing.
- You must have equity in your property. The percentage of equity vs. debt isn’t a static number, but you’ll need at least 35% equity at a minimum and even more the closer your age is to 62. If you aren’t sure if you have enough equity to qualify, contact us and mention this concern, and we’ll be able to tell you.
*If a condominium is not currently FHA approved, it will need to become FHA approved during the processing of the reverse mortgage loan. It would be wise to speak with your homeowner’s association about FHA approval before applying. Manufactured homes have very specific requirements to be approved including being on a permanent foundation. Please get in touch with us to learn more about the minimum requirements for manufactured homes.
The good news is that your credit scores and income are not currently used as part of the qualification process, though these rules will be changing later this year.
If you meet these requirements, then a reverse mortgage may be right for you. Continue on learn more about how reverse mortgages work and whether or not this kind of loan may be a good idea for you, or even download one of our step-by-step guides. When you’re ready, contact us to get a quote!