Reverse Mortgage Requirements

Monday, January 15, 2007

To qualify for a reverse mortgage in the United States, the borrower must be at least 62. The borrower must pay off any existing mortgage(s) with the proceeds from the reverse mortgage and, if needed, additional personal funds. There are no minimum income or credit requirements, and for most reverse mortgages, the money can be used for any purpose. A pending bankruptcy that has not been finalized may, however, slow the process. Some types of dwellings, such as lower-value mobile homes, do not qualify. Before borrowing, applicants must seek HUD approved counseling. The counseling is a free safeguard for the borrower and his/her family, to make sure they completely understand what a Reverse Mortgage is, and what the process of obtaining one is.

Reverse mortgages are offered by some state and local governments. These "public sector" loans generally must be used for specific purposes, such as paying for home repairs or property taxes.[1>. The majority of reverse mortgages are FHA insured.

Call 1-888-973-8377 to speak with a Reverse Mortgage Specialist.

Thanks to Reverse Mortgage Nation a Reverse Mortgage Lender for this Reverse Mortgage News.