What does it take to be eligible for a Reverse Mortgage?

Picket Fence in Front of HousesTo be eligible for a Home Equity Conversion Mortgage (HECM) loan, all borrowers must be 62 or older, own your home and reside in it as your primary residence. You must demonstrate a history of paying property taxes and insurance in a timely manner, and provide documentation that after the loan is completed, you will have sufficient income to maintain your minimum obligations, including property taxes, homeowners insurance, applicable homeowners association fees and any other fixed expenses, such as a car payment or remaining credit card debt.

Many home types are eligible, including:

  • One to four unit owner-occupied homes.
  • Townhomes and PUDs
  • FHA Approved condominiums.
  • Manufactured homes.

Your property will need to meet the minimum FHA requirements, which include property installed and working smoke alarms, carbon monoxide alarms and state and local safety requirements.

Determining if you qualify and how to best navigate any issues that may arise, is best done by an experienced, knowledgeable Loan Officer. Over 35 years of experience in the Mortgage Industry, makes Becky Smith uniquely qualified to assist you in pre-qualifying your loan request and determining ahead of time, what pitfalls if any may arise. Anticipating challenges and how to solve them is what I do best!