Reverse Mortgage Eligibility

One of my all time favorite real estate bloggers, is Tony Gallegos who writes "The Georgia Mortgage Cicerone". He is honest. He is ethical. Most of all he really knows his stuff!

He recently completed a three part series on Reverse Mortgages that I would like to share with you. This is Part Two.

You can click here to read it as he wrote it on ActiveRain, a network of Real Estate Professionals.  Thank you Tony for allowing me to share this. - Mike Mueller

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The specifics and eligibility requirements: 

• Homeowners/borrowers must be age 62 or older and occupy the property as their principal residence

• Property must be a single-family or a two-to-four unit dwelling

• No income, employment or credit qualifying restriction.

• Property must be owned free and clear or have a remaining mortgage balance which can be paid off by a reverse mortgage

• Property must meet HUD minimum property standards. In some cases, home repairs can be made after the closing of a reverse mortgage.

• Townhomes, detached homes, condominium units, planned unit developments (PUDs) and some manufactured homes are eligible

Maximum Loan Amount

The maximum loan amount is based on the following factors:

• Appraised value of the home

• Age of the youngest homeowner

• County in which the property is located

• Current interest rate

Generally speaking, the older you are, the more your home is worth and the lower the interest rate, the more you'll be able to borrow.

Previous posts in this "Applying For Your Loan" series:

What is a Reverse Mortgage?

  

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