Qualifying for a Reverse Mortgage

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Generally there are four requirements to qualify for a reverse mortgage:

• You must be a homeowner.
• You must be age 62 or older.
• You must live in the home.
• The home must be your Primary residence (no vacation homes or rentals homes).

Credit is usually not a factor. In fact if your home is currently in foreclosure, you can obtain a reverse mortgage in order to save your home. 

The one exception to credit is that if you are currently in a chapter 7 bankruptcy, you

 must wait until the bankruptcy has been resolved.  On the other hand, a chapter 13 bankruptcy can be paid off with the reverse mortgage.

Once obtained, there are three additional requirements you need to agree to:

• The home must be maintained in good condition.
• You must continue to pay property taxes and homeowners insurance.
• Title and ownership of the home must remain in your name.

The home itself generally must be a single family dwelling or a two-to-four unit property.  Townhouses, detached homes, FHA approved condominiums, and some manufactured homes ARE eligible.

Information released by the US Department of Housing and Urban Development indicates that over the past 15 years more than 300,000 senior citizens have taken advantage of the benefits reverse mortgages have to offer.