Am I Eligible?
In order to qualify for a reverse mortgage, you must meet several criteria. For starters, you must be 62 years or older, and your home must be your primary residence for the duration of the mortgage. This mean you cannot be living outside of it for more than 12 consecutive months. Moreover, you cannot qualify for a reverse mortgage on a vacation home or rental property. You must also either own your house outright or have at least 50% equity in it. If you still do have mortgage payments, you will have to pay the rest of them off before you can use the money received on other things. Finally, you will have to meet with a counselor who is approved by the U.S. Department of Housing and Urban Development. They will make sure you know everything that a reverse mortgage entails, describe the process of receiving one, and make sure that you understand the terms of the loan.
In addition to meeting the above personal requirements, your property must fulfill certain criteria as well. The property on which you want to take out the reverse mortgage must either be a single-family residence, a 2-4 unit property (with you living in one of the units), a condominium, or a townhome.
Finally, you will need to show that you can meet the financial requirements outlined in your loan. Although you will not be making monthly payments — in fact you will be receiving them — you still need to be able to pay your property taxes, maintain the upkeep of your house, and pay insurance on the property. You also need to be able to pay an upfront fee to receive this loan. Before you apply, you’ll want to gather all the financial documents that show you can maintain your end of the loan.
Contact Us For More Information About Your Eligibility
If you have any questions about your eligibility for a reverse mortgage, please do not hesitate to contact Family Home Loan Texas by calling 1-800-990-LEND (5363). We will gladly discuss all aspects of reverse mortgages and we can help you find the best possible loan for your unique needs.