The latest information on getting a reverse mortgage and whether your home qualifies for a reverse mortgage.
If you are looking for a way to increase your available funds, you may be considering a reverse mortgage. This type of loan is gaining interest in the United States, but it is important to know whether you and your home are eligible to apply for a reverse mortgage.
Personal qualifications
Eligibility for a reverse mortgage is very specific. They are available for seniors who are 62 years of age and older. You must own your own home, and have paid off your existing mortgage. In some cases, homes with existing mortgages may qualify for a reverse mortgage, if the remaining amount on the existing loan is less than the amount of the closing costs for the new mortgage.
What types of homes qualify?
In the most general terms, all single family homes owned by seniors over the age of 62 are eligible for a reverse mortgage, provided that the owner resides in the home to be mortgaged. If you own additional properties that you do not live in, these properties are not eligible. Additionally, two- to four-family homes can be eligible for a reverse mortgage, as long as the owner lives permanently in one of the units of the home. For the Federal Housing Authority’s HECM (Home Equity Conversion Mortgage) program, manufactured homes that meet the FHA’s specifications and HUD-approved condominiums may also be eligible.
Restrictions and exemptions
There are many different programs and institutions offering opportunities for a reverse mortgage. Each program may have different rules for eligibility. To find out whether your home qualifies, you can check with any of the private or government companies that offer these services. In most cases, you will be required to meet with a reverse mortgage counselor in order to discuss your options, and eligibility for your home will be determined at that point.
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