The following information for the eligibility criteria for a Reverse Mortgage is provided by the National Reverse Mortgage Lenders Association (NRMLA). Visit their website for a more comprehensive explanation.
Age qualification: The primary borrower listed on title must be at least 62 years old.
Credit: You must show 24 months of being current on property taxes and 12 months current on loan payments if you have an existing loan.
Income: Income requirements are a fraction of conventional loan requirements. Basically, you need enough income to pay property taxes, insurance and basic living expenses. You current debt (not including the home loan), may affect your net usable income. Schedule a consult with us to get more specific.
Primary lien: A reverse mortgage must be the primary lien on the home. Any existing mortgage must be paid off using the proceeds from the reverse mortgage. With the Reverse paying off the existing liens, the monthly payments are no longer required.
Occupancy requirements: The property used as collateral for the reverse mortgage must be the primary residence. Vacation homes and investor properties do not qualify.
Taxes and Insurance: Borrowers must remain current on their real estate taxes, homeowners insurance, and other mandatory obligations, including condominium fees.
Property Condition: Borrowers are responsible for completing mandatory repairs and maintaining the condition of the property.
The above is not a complete explanation of the Reverse Mortgage process. Please speak with a licensed Reverse Mortgage Broker to get a full analysis and recommendation.
North Point Financial is a Real Estate Broker – Broker license numbers: NMLS (985055 and 974889), Cal BRE (0662853) Cal Contractor- General, Electrical and Plumbing #381401 These materials are not from HUD or FHA and were not approved by HUD or a government agency. Copyright © 2017 North Point Financial. All rights reserved.