If you’re interested in a reverse mortgage loan, the first step is to meet with a HUD-approved counselor and undergo a financial assessment and counseling session to determine if this is the right loan solution for you.
To be eligible, you must meet these five qualifications:
1. You must be 62 years of age or older
A younger spouse or occupant of the home may be able to participate in the program in some states.
2. You own your home and use it as your primary residence
A primary residence is the main home where you and your family live. It’s the place where you spend the majority of your time and where you receive mail and pay your bills. Reverse mortgages can’t be used for rental properties, second homes or vacation homes.
3. The house is single-family, multi-family (up to four units) or an approved condominium or manufactured home
For a multi-family home (up to four units), you may qualify for a reverse mortgage as long as you occupy one of the units.
4. You own your home free and clear or have a small amount left to pay on the existing mortgage
Borrowers must also be current on all federal taxes and settle any tax debts.
5. Your home is in good condition before taking out the loan