When researching a Reverse Mortgage, their are many factors to take into consideration. Understanding the terms, knowing what it takes to qualify and how much or how old you need to be to qualify are also some common areas of knowledge to familiarize yourself with. With different loan types, come different qualifications. To qualify for a Reverse Mortgage, it is important to know the following, as it will greatly fast track the process of obtaining a Reverse Mortgage. The first thing you should know is the age requirement to be eligible for a Reverse Mortgage. At least one borrower on the loan should be 62 years of age or older. The loan amount varies based upon the age of the youngest borrower on the mortgage, with the older that borrower is, the more equity that is available to you the homeowner. Recent changes have allowed spouses under the age of 62 to also be on the Reverse Mortgage, ensuring the surviving spouse will never be forced out of the home because of the Reverse Mortgage.
The second factor that is very important to understand is the amount of equity you currently have in your home. Figuring this out is usually a guestimate, as the Reverse Mortgage lender will always require an appraisal to be done by an approved FHA (Federal Housing Administration) appraiser. Only after the appraisal is complete, will you know the true amount of equity in your property. This is done by subtracting your current mortgage(s) and/or lien(s) on the property from the current appraised value. It is important to know that a Reverse Mortgage requires homeowners to pay off any and all existing Mortgages and or liens on the property. Meaning, the Reverse Mortgage must be the 1st and only lien on the property at the time of closing.
Lastly, It is important to know the types of property that qualify for a Reverse Mortgage. Single Family residences, 2-4 unit properties, FHA approved condominiums and Manufactured homes that meet certain criteria are eligible for a FHA insured Reverse Mortgage. Co-ops, Timeshares, and commercial properties are not eligible for financing under the Home Equity Conversion Mortgage or HECM as it is also known. For more information be sure to check out www.reversemortgagespace.com for a no obligation quote and a wealth of information.