There are several factors involved to qualify for a reverse mortgage.
- You must be 55* years or older
- You are not delinquent on any debts owed to the federal government
- You must have a significant amount of equity in the home or own it out-right
- You must live in the home as your principal residence
- You must be able to continue paying property taxes and other costs associated with the home (maintenance, insurance, HOA fees, etc).**
*For certain HomeSafe® products only, excluding Massachusetts, New York, and Washington, where the minimum age is 60, and North Carolina, Texas, and Utah, where the minimum age is 62.
**There is a financial assessment when applying for a reverse to determine whether the applicant has the willingness and capacity to afford reverse mortgage obligations including property taxes, homeowners insurance, and other property charges they might have. If the lender finds that a loan applicant does not have adequate cash flow to uphold the mandatory obligations of the reverse mortgage, they may require what is known as a Life Expectancy Set-Aside, or a “LESA,” for short.
This article is intended for general informational and educational purposes only, and should not be construed as financial or tax advice. For more information about whether a reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional.