Anyone over the age of 62 in America has the option of taking out a reverse mortgage. Of course, like with any form of lending or finance, there is certain criteria that needs to be met before someone will be eligible for a reverse mortgage. Homeowners should also take advantage of a reverse mortgage calculator to determine how much they can be financed, depending on the equity in their home.
The Reverse Mortgage Criteria
Following is a list of reverse mortgage requirements that need to be met in order to be accepted for a reverse mortgage:
- All borrowers have to be at least 62 years of age or above and must undergo a full financial assessment.
- On top of that assessment will be a counselling session that will be conducted by a HUD approved counsellor.
- The home must be the primary place of residence of the homeowner, and it must be in acceptable to good condition in order to be eligible for the reverse mortgage option.
- Eligibility also depends on whether the home is owned outright, or only has one small repayment left on the mortgage.
- Eligible homes must be single family, or a multi family of no more than 4 people.
There is more criteria to be eligible and it will vary a little depending on the lender, but the above list is the major criteria required to reverse mortgage a home.
Reverse Mortgage Calculator
Banks and lenders all have various finance calculators on their websites, and these are handy and simple little tools that allow potential borrowers to work out their eligibility for a loan and what the repayments are likely to be.
It’s the same for a reverse mortgage and, as things can vary from place to place, the first thing the borrower must do is input their zip code. The age of the people looking to apply needs to be entered, as well as the current value of the home in question. There will be some optional input fields to further refine the reverse mortgage calculator results.
Take Advantage Of The Reverse Mortgage Option
Homeowners over the age of 62 should definitely look into the reverse mortgage option, first utilizing a reverse mortgage calculator, and then getting in touch with Reverse Mortgage Site to discuss details with a friendly consultant.