What are the qualifications for a reverse mortgage?The basic qualifications for a reverse mortgage are fairly simple. If you are at least 62 years old and own your own home, you are on your way to qualifying for a reverse mortgage. This does not mean however that anyone who is 62 and owns their own home will receive, or should even apply, for a reverse mortgage.
There are other factors to include when determining if you are eligible for or are a good candidate for a reverse mortgage. These factors include how much, if anything, you owe on your traditional mortgage, if the home is your primary residence, and if other relatives or loved ones are living in the house as well. If there are others living in the house who are not co-borrowers, they likely will have to move when the borrowers pass away.
If you live in St. Louis, Missouri, or the tri-state area and are considering a reverse mortgage, contact the team at Senior Health Solutions, LLC. Our team offers the compassion and professional guidance you need to determine if a reverse mortgage is right for you and your family. With more than 20 years experience, we have the knowledge and expertise you can rely on.
What should I think about before applying for a reverse mortgage?Before applying for a reverse mortgage, it is important to carefully consider your potential eligibility as well as whether it is a proper financial choice for you. Consider your age, income, and the amount of money you owe on an existing traditional mortgage, if you have one. Also, remember that a reverse mortgage is a loan, so you will have the option to repay the loan, and repayments may be tax deductible.
There are some specifics that help determine eligibility beyond simply age and homeownership
Stay in your home
Unlike simply selling your home, a reverse mortgage lets you stay in the home without having to pay rent or have a landlord
Type of residence
o Most residences are eligible including single-family homes, townhouses, 2-4 unit residences, condos, and manufactured homes built after 1976, however co-ops are not eligible
Ownership of other properties
You can only take a reverse mortgage on your primary residence, not on investment or vacation properties
Home equity amount
If you still owe money on a traditional mortgage, the reverse mortgage must be in first lien position in order to pay off the existing debt on the property
Eligibility for other benefits
A reverse mortgage won’t affect your Social Security or Medicare benefits but will count as assets that could affect your eligibility for Medicaid or other income-based assistance
You must have the resources to pay property taxes, insurance, living expenses and other relevant fees as well as pass a credit check
No medical eligibility
There is no medical eligibility for a reverse mortgage
Meet with a counselor
You will need to meet with a reverse mortgage counselor as well to determine if it fits your needs