Qualifying for a reverse mortgage is not as complicated as a conventional mortgage. There are no minimum credit scores, and minimal income requirements. Here are the basic requirements to qualify:
- The primary borrower must be a 62 years of age or older.
- The property must be your primary or principal residence.
- The property can be a single family home, up to 4 units provided you live in 1 of the units. Most condominiums are also acceptable, as are some manufactured homes.
- Payment of your mortgage, taxes, and insurance must generally have been paid on time in the last 24 months, as well as payments to your creditors in the last 12 months.
- You must obtain counseling from an HUD approved 3rd party counseling company.
- Your property must appraise for an amount sufficient to pay all liens or mortgages on your property plus an amount of remaining equity using HUD’s Principal Limit Factor formula. This amount can quickly and easily be estimated by your reverse mortgage professional.
Reverse mortgages are underwritten by FHA approved underwriters and, similar to conventional loan qualifying, exceptions can be made. It is important to speak with a reverse mortgage professional about your individual situation.