Eligibility Requirements for a Reverse Mortgage
equity loans are often used by homeowners to consolidate debts. They
put all of your debts into one convenient monthly payment with lower
interest. But did you know that if you are a senior citizen, you can
get a loan on your home that does not require monthly payments?
type of loan is called a reverse mortgage. It allows seniors to
leverage the equity in their homes to pay off other debts, make home
repairs, pay property taxes or health care costs, or do anything else
with it they wish. No payment is due until the homeowner moves out,
sells the home, or passes away.
are certain requirements that must be met in order to get a reverse
mortgage. But most senior homeowners do qualify. The guidelines are as
must be at least 62 years of age. If there is more than one name on the
title to the home, all parties must be 62 or older. If one of the
co-owners is under the age of 62, that personís name must be removed
from the title before a reverse mortgage can be obtained.
home must be your primary residence. You cannot get a reverse mortgage
on rental property or any other home you do not live in. This is
because the balance of the loan is due once you no longer live in the
home in question must qualify. Most single-family homes and
condominiums, one to four unit owner-occupied residences, and
manufactured homes qualify. But some mobile homes and most cooperative
housing do not.
you have received a reverse mortgage, there are certain conditions that
must be met to keep it. If these requirements are not met, you may be
found in default and have to pay back the loan. They include, but are
not limited to, the following:
- You must pay your property taxes.
- Your home must be properly maintained. Necessary repairs must be made to ensure that the home retains its value.
as with a traditional mortgage, you must keep your home insured.
Homeowners insurance must be obtained to protect the lenderís interest
in the home.
- If you declare bankruptcy, you could be found in default.
- You cannot abandon or donate your home to any person or organization.
- If the home is condemned, you will likely have to pay back the loan.
- Many contracts prohibit the owner from adding any new owners to the title of the home.
senior citizens age 62 or older who own their homes qualify for a
reverse mortgage. As long as the home you wish to obtain a reverse
mortgage on is your main residence and meets a few requirements, you
can use it to get the money you need without incurring additional
monthly payments. A mortgage originator can help you find the best
reverse mortgage for your situation and get your finances where you
want them to be. If
you would like more information about the reverse mortgage process and
how it can help you live out your retirement without the stress of
financial burdens please call me or one of my team members at
219-662-0166 or send an email here: firstname.lastname@example.org
We will be
happy to provide a complete complimentary analysis of the amount of
money you could expect to receive from the best available products.
James Barath, CMPS