Who qualifies for a Reverse Mortgage?

Preface: Reverse Mortgage Fees

Despite what you may be told, Reverse Mortgage Fees are negotiable. Get a fee quote from us before you apply elsewhere.  Ask about our Low Fee Guarantee.

1. All applicants must be 62 years of age or older. The older you are the higher your benefit will be.

2. Your home must be in "Lendable" condition.  Repairs can be made and paid for from the proceeds of your Reverse Mortgage if your property has deficiencies; ie needs roof repairs, painting, plumbing, etc. 

3. Single Family Detached, Condominiums, 2-4 units, Town Homes, Planned Unit Developments and Manufactured Homes on FHA Compliant permanent foundations qualify. You must own the land under the manufactured home fee simple. Manufactured Homes in Condominium Developments do not qualify at this time.

4. You must occupy the home as your primary residence. It can not be rented out except in the case of 2-4 unit properties. 2-4 Unit properties qualify if the Senior Citizen occupies one of the units.

5. A Pest Control Inspection may be required. Any remediation required must be done. Required Repairs can be paid for from the loan proceeds.

6. Credit history is not a factor in the approval process. Active Bankruptcies must be discharged one day prior to funding.  A poor credit history is acceptable. Outstanding collections, judgements or tax liens can be paid from the Reverse Mortgage proceeds. You can not be denied a Reverse Mortgage because of poor credit, Prior mortgage delinquency or even an active foreclosure. If you have financial problems a Reverse Mortgage could be the solution.

7. Existing mortgages can be paid off with the proceeds of a Reverse Mortgage. You do not have to own your home "Free and Clear" to qualify for a Reverse Mortgage.

8. You do not lose control of your property when you obtain a Reverse Mortgage. The property can be sold at any time. If there is remaining equity in the property it belongs to you or to your heirs. 

9. If one of a Senior Couple is under age 62 the older spouse can apply for and be granted a Reverse Mortgage in their name only. There are a number of issues that need to be discussed if you elect this option.  Call Ken Terrill at 800-481-9999 for details. This option is not always advisable but can be useful in some cases.

10. You can not outlive a Reverse Mortgage. Your benefit is guaranteed at the time you obtain the Reverse Mortgage. If you elect monthly income it is guaranteed for the life of the youngest borrower. The loan is not due at age 100, it only comes due when you have departed this life. The loan is not due if you have drawn more in benefits than the current market value of the property. Guaranteed monthly income continues for as long as you live  - NO MATTER WHAT!!

11. Your estate has no liability should the balance on your Reverse Mortgage exceed the value of your home at the time of your death.  The lender will accept title to the property as payment in full. This is the "Non-recourse" clause. On the other hand, if there is equity remaining in the property it goes to your heirs as a  part of your estate.

12. When the last borrower passes on your heirs will have decisions to make. The property can be sold, the Reverse Mortgage paid off  and your heirs get any equity remaining. The loan can be refinanced to pay off the Reverse Mortgage and your heirs retain the property. The Reverse Mortgage can be paid from other assets in your estate if available.

13. The only difference a standard mortgage has that a reverse mortgage does not is the requirement to make regular payments. A Reverse Mortgage pays you. Once obtained the Senior Citizen is not required to make any payments on a Reverse Mortgage. The Senior does agree to maintain the property and to pay the Property Taxes as they come due. 

The above are the most common questions Seniors have. Feel free to e-mail or call with any other questions. Other than spending your childrens inheritance there are few drawbacks to a Reverse Mortgage.  In many cases a Reverse Mortgage can substantially improve a Seniors quality of life. It can provide extra income, a source of cash in a time of need, or simply give a Senior more descretionary income by eliminating a mortgage payment. 

You can reach me Toll Free at 800-481-9999 ext 118

Evenings or weekends call 800-811-2738 - ask for Ken.

Ken Terrill

President

American Mortgage Professionals, Inc.

e-mail: ken@ampy.com