A reverse mortgage loan is commonly known as a home equity conversion mortgage (HECM). It works by enabling the borrower to access equity in their property and use it to supplement retirement income.
What are the qualifications for a reverse mortgage loan?
All prospective borrowers who are interested in a reverse mortgage loan must meet with a HUD approved counselor and undergo a financial assessment to determine if a reverse mortgage loan is the right solution. There are certain qualifications for a reverse mortgage loan that need to be met in order to be eligible.
Qualifications for a reverse mortgage loan:
You are 62 years of age or older
You own your home and use it as your primary residence
The house is single family, multi-family (up to 4 units) or an approved condominium or manufactured home
You own your own home free and clear or have a small amount left to pay on the existing mortgage
Your home is in good condition prior to taking out the loan
Requirements for a reverse mortgage loan:
During the term of your reverse mortgage loan, you will still be required to pay:
Basic home maintenance
Homeowner’s Association (HOA) fees, if applicable
Benefits of a reverse mortgage loan
If youqualifyandare able tomeet the requirements,there are several reasons why homeowners choose a reverse mortgage loan:
Eliminate monthly mortgage payments
Access the equity you have built in your home
Supplement retirement income
Loan amount is based on your age, home value, and current interest rate and can be dispersed in a lump sum or line of credit
Loan does not have to be repaid as long as you are living in the home and meeting loan terms
Let’s connect so we can help you learn how a reverse mortgage loan works and you can decide if it’s the right choice for your situation.
*These are brokered loan products.
All loans subject to underwriter approval; terms and conditions may apply. Subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.
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