What does it take to qualify for a reverse mortgage?

A reverse mortgage is a senior entitlement that is managed and backed by HUD. The only requirements are that you are 62 years old or older, and that your home has enough equity to fund the reverse mortgage.

There are no credit report requirements. You cannot be turned down because you have bad credit. You cannot be turned down because of a bankruptcy (as long as it is not still in process). You cannot be turned down because of credit card debt, personal loan debt, or other indebtedness that is not related to the home.

When you apply for a reverse mortgage, the company you are applying with should be able to provide you with a very close approximation of what amount of money you would control after the loan process is complete. This amount is estimated from the value of the home, the current equity or mortgage loans on the home, and your age.

Here are the other factors that could affect the amount of money you get.

1) Any hidden liens on your home (Loans or payments owed on your home that are not part of your mortgage.)
2) Repairs that HUD requires you to do prior to granting you a reverse mortgage. (HUD makes sure that your home will be habitable.)
3) Any unpaid taxes on the home. (IRS tax liens, past due property taxes.)

Other than that, the process should be quick and the numbers should be accurate to within a couple thousand dollars.

A good reverse mortgage company should be able to process your loan within 21 days, some companies can do it even faster.

You should also note a good reverse mortgage company should handle the entire process without any "out of pocket fees" for services like an appraisal, bug report, or home inspection.

Bob
bob@az62.com