Is there a right market for reverse mortgages? Yes! If you are at least 62, have a limited income, and have equity in your home.
Who qualifies as the right market for reverse mortgages?
Reverse mortgages were designed to help seniors age 62 and older who have limited income. Many seniors have very little retirement money saved and their social security just isn’t enough to take care of them. For these people reverse mortgages might be an option. What reverse mortgages do is the opposite of traditional mortgages. Instead of you making a monthly payment to the lender, the lender makes a monthly payment to you!
What other requirements are there for reverse mortgages?
Besides being at least 62, the borrower needs to either own their home with no mortgage or have a mortgage that is no more than about 65% of the value of the home. Reverse mortgages borrow money from equity in the home. The federal government sets the guidelines for eligibility based on the age of the borrower and how much value is in the home. Income and credit rating are not evaluated in this process. The home must also be the primary residence of the borrower.
Are all homes eligible for reverse mortgages?
Almost all homes are eligible. However, if you own a mobile home, it must be less than 30 years old. It must have a permanent foundation and the land it is on must be owned by the borrower.
Are you part of the right market for reverse mortgages?
There is a right market for reverse mortgages. If you are at least 62 years old, own the home you live in, or have a very small mortgage, and would like to use the equity in your home reverse mortgages may be for you.
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