BASIC QUALIFICATION REQUIREMENTS. Learn how to qualify for Reverse Mortgage.
- Must be 62 years old or older. No exceptions to this rule.
- Property must have substantial equity or free and clear. Typically the lender will do a free market analysis of the borrowers home to establish an accurate estimate of how much proceeds the borrower can receive.
- Must have the ability to continue paying for property taxes, homeowners insurance and/or HOA dues. The HECM does not include these obligations.
- Property must be in average condition or better. If the home requires major repairs, they must be done prior to closing. On the other hand, if the property is in satisfactory condition, proceeds from the loan can always be used to update or remodel the home.
HOW MUCH DO YOU QUALIFY FOR?
The National Reverse Mortgage Lenders Association has a great calculator that can be used to estimate loan proceeds. For a better understanding of how much someone qualifies for and what options are available, we encourage homeowners to speak with a reverse mortgage professional. Also, since this loan is driven by equity in the home, doing a property analysis prior to using the loan calculator can also be helpful.