Senior Homeowners over the age of 62 are being bombarded on television every day about the benefits of a Reverse Mortgage. The truth is, Reverse Mortgages are not an ideal solution for many homeowners. The costs affiliated with obtaining a Reverse Mortgage normally exceed those of a traditional mortgage. This leads many senior homeowners to look elsewhere when looking for a way to utilize the equity in their home to help ease the financial burden of retirement. The largest asset most people will ever own is their home, and a Reverse Mortgage is only one of many options to tap into that equity.
A Reverse Mortgage is usually a last resort for senior homeowners to access the equity in their home. There are several reasons that a Reverse Mortgage can benefit you or your family. Reverse Mortgages have much easier underwriting guidelines that help make the qualifying process significantly less difficult. The biggest advantage is the fact that income qualification and credit scores are not required.
There are only a few Reverse Mortgage requirements:
- At least 1 homeowner must be 62 years old
- Must be there primary residence
- Property must have equity (difference between amount owed and property value)
In some cases, there are other qualifying requirements, such as property type and mental competency. All of the information required as to why or why you shouldn’t inquire if a Reverse Mortgage is right for you or your loved one can be found in a Reverse Mortgage Guide.