Can I Get A Reverse Mortgage Even If My Current Is Not FHA? The answer may surprise you. A reverse mortgage doesn’t require the mortgage to be FHA.
To qualify for a reverse mortgage a home owner does not need to have any particular type of mortgage. To qualify for a reverse mortgage a home owner does not necessarily need to have a mortgage at all. The home owner best qualified to have a reverse mortgage would likely be the home owner who does not have an existing mortgage. This way the company extending the reverse mortgage to the home owner is at less risk, since a home owner with a traditional mortgage could default, leaving the company holding the reverse mortgage with nothing.
I’ve got a primary and secondary mortgage. Can I get a reverse mortgage even if my current mortgages are not FHA mortgages?
Yes. The mortgage doesn’t have to be an FHA mortgage for the home owner to qualify for a reverse mortgage. However, if the home owner is behind on the current mortgage, or if there are too many mortgages on the home, the reverse mortgage company is likely to decline, due to the increased risk of loss on their investment. This is not always the case though, and a reverse mortgage company could very well approve a home owner with one or more mortgages, depending on the specific circumstances.
Why would I want a reverse mortgage anyway?
Reverse mortgages allow for some homeowners to escape from debt that would otherwise radically effect their lifestyle. If income is reduced or completely eliminated a reverse mortgage can mean the difference between losing everything and living comfortably. Many of today’s seniors facing retirement in such a volatile economy are looking to reverse mortgages to secure additional retirement income that allows them to stay in their residence without worry.
Related posts: