Reverse mortgage requirements
Reverse mortgage eligibility
If you’re thinking about your retirement options, you might be wondering if you meet the reverse mortgage requirements. A reverse mortgage is just one of many possibilities to supplement your retirement.
What are the standard reverse mortgage qualifications?
There are a number of requirements for a reverse mortgage. Here are some of the requirements:
- Age - You must be at least 62 years old to apply for a reverse mortgage. Reverse mortgages were designed for seniors and it enables them to supplement their retirement finances.
- Home ownership - Your name must be on the title of the home if you want to apply for a reverse mortgage. It’s possible to meet reverse mortgage requirements without fully paying off the home, but the amount due must be low enough that the loan can cover it.
- Type of home - Single-family homes and two to four-unit apartment buildings qualify provided you live in one of the units. Manufactured homes and condominiums do qualify if they meet the requirements laid out by the U.S. Department of Housing and Urban Development's (HUD) Federal Housing Administration (FHA) and are FHA-approved. Homes on farmland or any other land that produces income do not qualify.
- Counseling - Everyone who applies must first meet with a HUD approved Home Equity Conversion Mortgage (HECM) counselor to discuss options and financial requirements for a reverse mortgage.
- Residency - The home you plan to use for a reverse mortgage needs to be your principal residence. This also means that you can’t live elsewhere for more than 12 months in a row without possibly being in default.
What are some of the reverse mortgage financial requirements?
We’ve already listed some of the standard requirements and now you might be wondering how much money you’ll need. The point of a reverse mortgage is to get access supplemental retirement cash, so it makes sense that the financial requirements are important. Two such requirements are as follows:
- You cannot be delinquent on any federal loans
- You must have the financial assets required to pay for property changes, including homeowner’s insurance, real estate taxes, maintenance & any other property fees
Find out more information about reverse mortgage requirements
To learn more about reverse mortgage requirements and the other financial products we have to offer, please contact Quontic Bank today at 1-800-388-7689.
Quontic Bank is a Member FDIC bank, federally regulated by the U.S. Office of the Comptroller of the Currency. We have an A+ rating from the Better Business Bureau and were named to the Top 200 Healthiest Banks In America in 2016, ranking No. 88 of the 6,199 federally insured banks in the U.S., according to DepositAccounts.com, a website that monitors and informs consumers of how well financial institutions perform. We were also ranked the 12th largest reverse mortgage lender in the U.S. by "Reverse Mortgage Daily," a reverse mortgage news website.