Discover how easy you can qualify for a reverse mortgage, regardless of income and credit history. Take advantage of your home equity to reduce payments and increase cash flow.
The benefits of a reverse mortgage attract most homeowners. The ability to eliminate home payments, receive a new monthly check, and pay off credit cards is a great option. If your debts are under control, your newfound prosperity is yours to use anyway you like, if you qualify.
Qualification
A reverse mortgage does not create individual liability. The loan is without recourse and home equity is the sole repayment source. Because of this unique advantage, income is irrelevant. To qualify, show a lender that the reasonable market value of your home exceeds the total balance of all existing liens. Based on this measure, lenders determine a maximum loan amount and establish a new line of credit. You may draw on your line of credit up to the maximum loan amount approved by the lender.
Reverse Mortgage Considerations
To maintain your line of credit in good standing, homeowners are subject to a few requirements. These requirements are necessary to protect collateral value. Homeowners should have hazard insurance coverage to reimburse property damage. Homeowners should maintain their home’s condition to preserve property value. As always, taxes must remain current when owed to government authorities. The last surviving spouse cannot vacate the home for more than 12 months. So long as you meet these requirements, your line of credit is available each month.
Payments
As long as you or your spouse stay in your home, loan payments are not required. The same conditions mentioned above also apply to paying off the loan. If you allow property condition to slip, insurance to lapse, or forget to pay taxes, the lender may call the loan. Otherwise, you may remain at home for as long as like without making payments of any kind.
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