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For most seniors, the best news about a Reverse Mortgage is that – unlike a Home Equity Loan – there are not any income requirements to qualify. (Unlike a traditional mortgage, there are no payments on a Reverse Mortgage until you vacate the residence.)
But, there are other strictly enforced eligibility requirements for most Reverse Mortgages.
To qualify for a Reverse Mortgage you must:
--> Be 62 years of age or older.
--> Be eligible for a loan amount sufficient to pay off all mortgages and liens on your property. In order to get a Reverse Mortgage, you must be able to qualify for at least enough money to pay off all debts that already exist on the property.
The amount of money you can get from a Reverse Mortgage is determined using a calculation that takes into account your age, county, current interest rates, and the total value of your property. The amount of money you can get from a Reverse Mortgage must be more than what you owe on your home.
Typically, you will probably qualify for a Reverse Mortgage if you owe less than 50 percent of your home's value, but some people qualify owing as much as 80 percent of their mortgage. If you would like to find out how much you are eligible for and verify whether or not you have sufficient equity to qualify, try our Reverse Mortgage Calculator.
--> Own and reside in your home.
In most cases second homes, apartment buildings and homes less than a year old are not eligible for a Reverse Mortgage
Some companies may accept 2-4 unit owner-occupied dwellings, along with some condominiums, planned unit developments, and manufactured homes. Generally cooperatives are not eligible nor are homes that are less than a year old.
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.