Who Qualifies for a Reverse Mortgage?
Find out if you qualify for a reverse mortgage and how to get one.
If you are over the age of 62, you may qualify for a reverse mortgage. Reverse mortgages, as the name suggests, are the opposite of traditional mortgages. Instead of paying your lender each month, you receive a loan check. The money can be used for any purpose you choose, and it does not need to be paid back as long as you continue to live in the property.
NO APPROVAL PROCESS
Traditional mortgages often take a long time to process because applicants must pass a credit check and income verification process. There are no such credit or income requirements for reverse mortgages. The only requirements are that the applicant be over the age of 62, own her own home, and not owe a balance on a first or second mortgage.
MOST HOMES QUALIFY FOR A REVERSE MORTGAGE
In order to receive a reverse mortgage, you simply have to own your own home. Generally speaking, you must not be paying a mortgage already on your home to qualify for this program. In cases where you owe a small amount on your mortgage, you may be allowed to use the first month’s payment to clear the balance. Manufactured condos and co-ops are currently excluded from the reverse mortgage program; all other homes qualify.
FUTURE PLANS ARE OPTIONAL
The reverse mortgage becomes payable when you move out of your home. However, if this is of concern to you, there are several other reverse mortgage plans available. Some people obtain a reverse mortgage for a limited amount of time so that they can move without amassing a large debt. You also can opt for a line of credit rather than a monthly payment plan. This allows you to use reverse mortgage funds only when necessary so that you or your heirs will not have to pay back a large sum of money once you move.
Related posts
- Why Should I Invest in a Reverse Mortgage?
- Can I Use the Funds Received From a Reverse Mortgage Any Way I Choose?
- What are the Different Types of Reverse Mortgages?
- How Much Am I Entitled To Receive Through A Reverse Mortgage?
- Why is a Reverse Mortgage a Good Idea?
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