Do Both Homeowners Need To Be 62 To Get A Reverse Mortgage?

Methods to get around the minimum age requirements of reverse mortgages. If both home owners are not 62 or older, there are still ways to qualify for your reverse mortgage.

With the housing market in turmoil, many homeowners are trying to find ways of capturing the equity, without loosing their home. A reverse mortgage is the answer for many home owners. A reverse mortgage allows you to get money from your home without having to leave it. It is a simple process. The home owner gets a lump sum payment or multiple payments totaling the equity in the home. The mortgage is not paid until the owner dies, sells the house, or moves out of the house. This type of mortgage is only available to seniors, ages 62 and above.

What if the home is jointly owned?

If two people own the home, where one meets the age requirement and the other does not, they cannot qualify for a reversed mortgage. The law is very specific on this, both owners of the property must be 62 years of age or older. Do not be discouraged. It can be worked around. The older homeowner needs to simply get a quit claim deed, to remove the non-qualifying home owner from the mortgage.

What is a Quit Claim Deed?

A quit claim deed is a legal document that removes one party from responsibility and liability of a mortgage. By signing a quit claim deed, one owner transfers all rights to the property to another. This will get by the legal requirement that the home owners must be 62 or older.

How Does the Younger Partner Protect Themselves?

If the older partner is in good health, the younger partner can take out a life insurance property. That will allow them to purchase back the house if the deed holder suddenly passes. This is short term solution that will allow the younger person the chance to re-finance the reverse mortgage, once they reach the age of 62. The advantage of doing this is that the value of the home will have gone up and more equity pulled.

There are ways around the age restrictions of a reversed mortgage. Even if both owners are not 62 years of age, there are ways to qualify. The peace of mind that comes with monthly income, from your home, is invaluable. With a little bit of planning, both partners can find a way to protect their home and income.

Related posts:

1. Do Both Homeowners Need To Qualify For A Reverse Mortgage?
2. Is A Reverse Mortgage Good For Elderly Homeowners?
3. Can A Parent Do A Reverse Mortgage On A Child’s Home?
4. Am I Eligible For A Reverse Mortgage If My Spouse Is Under 62?
5. Can I Get A Reverse Mortgage With My Children On The Title?

This entry was posted on Wednesday, January 27th, 2010 at 6:51 pm and is filed under reverse mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.