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Are you eligible for a reverse mortgage?

Posted on: 26th Mar, 2004 03:47 am
If you are living on fixed income with home equity as your only asset and need additional funds on a regular basis, you may be the right person to look out for reverse mortgages. However, make sure that you don't want to leave much of the property to your heirs.

Reverse mortgages require you to satisfy the criteria as given below:

Borrower's profile:

  • You and your co-borrower, if any, should be aged 62 years or above.

  • You should be the owner of the property against which you intend taking the reverse mortgage.

  • You should occupy the property as your primary residence.

  • There should be enough equity in your home.

  • If there are past debts on your home, pay them off prior to taking out the loan or else pay them off right after you get the loan funds.

Property type:

  • 1 unit single family dwelling

  • 2-4 unit owner occupied dwelling

  • Condominiums and townhomes

  • Planned unit developments (PUDs)

  • Mobile home or manufactured homes
However, properties like townhomes, condominiums, mobile homes and modular homes often qualify only if they meet the criteria set by the FHA. For mobile homes, one has to own the land in addition to satisfying the criteria set by FHA.

The best thing about reverse mortgages is that you don't need great income or credit to qualify for such loans. In fact, lenders don't ask for a minimum income or credit requirement when it comes to qualifying for reverse mortgage.

Related readings
>>i have no mortgage payments on my house, do i qualify for a reversed mortgage?

You qualify if you're 62 or older, and the house is an eligible property type that's your primary residence. Homeowners without a monthly payment benefit more then homeowners who have a monthly payment.

You can see how one works for you at www.ReverseMortgageCalculator.org. Call me at 949-400-1729 if you have any questions.
Posted on: 07th Jun, 2010 11:02 am
if you have money in an annuity that you receive quarterly to live on, does that interefere with getting a reverse mortgage? my home needs improvements, if I touch the annuity fund for these improvements I'll have nothing left. Also, how do I decide which company is safe to deal business with?
Posted on: 10th Jun, 2010 10:45 am
>if you have money in an annuity that you receive quarterly to live on, does that interefere with getting a reverse mortgage?

No
>>how do I decide which company is safe to deal business with?

Interview several experienced Loan Officers that only do Reverse Mortgages, and select the one you're the most comfortable with. And feel free to ask them for 3 references too.
Posted on: 10th Jun, 2010 01:28 pm
If my condo is worth 90,00 and I owe 43, 000 on it from a bank, would I still qualify for some type of reverse mortgage
Posted on: 06th Jul, 2010 05:18 pm
It depends on your age and the State you live in. California doesn't have mortgage taxes, so I'll use that State in our example. If you're 72 and owe 43,000 on a home that's valued at 90,000, the Reverse Mortgage will provide you with $2,405.00 in cash, after paying off your existing mortgage and loan fees. The primary benefit you'd receive is elimination of your monthly mortgage payment.
Posted on: 06th Jul, 2010 06:13 pm
my grandmother at 78, recently lost my grandfather roughtly almost a year ago as well as most of their income. she has fallen more and more into debt and cant seem to catch up to every months bills let alone have mabye enough for her mortgage everymonth. She has a downstairs consisting with a kitchen living room and one bath, a small back porch off kithchen. An upstairs with only two rooms and wide hallway.The house sits on a little less then a acre in rotterdam junction, n.y. on a dead end right along the Erie canal banks. The estimated home value is about $120,000. We have been the only family of four generations to won generations to live and own the house, any information you have to help would be much appreciated.
Thank You Much!!!
Jackie
Posted on: 20th Aug, 2010 08:17 am
How much does your Grandmother owe on her mortgage? You can try my calculator at www.ReverseMortgageCalculator.org to see how a FHA-insured Reverse Mortgage would work for her, but you'll need to know how much she owes on her mortgage first.
Posted on: 20th Aug, 2010 05:52 pm
Have read various articles on qualifications for reverse mortgage on mfg homes - and comments about needing to own land. I do not own land, but have a 95 of 1800 SF I own outright in Oregon - is there ANY source, be it banking, state, fed., or low income program? I am LOW income - and in OR.
Posted on: 29th Sep, 2010 06:00 pm
Hi anon,

As you don't own the land, it will difficult for you to qualify for a reverse mortgage on a manufactured home. Moreover, most lenders are not ready to offer a reverse mortgage on a manufactured home. Nevertheless, you should contact the local lenders of your area in order to check out whether or not they can help you with a mortgage.

Thanks,

Jerry
Posted on: 30th Sep, 2010 04:05 am
You must either own the loan, have a life estate, or have a long term lease, to get an FHA-insured Reverse Mortgage.

All the Lenders I work with offer Reverse Mortgages with Manufactured Homes, as long as they qualify, per HUD's guidelines.
Posted on: 30th Sep, 2010 08:25 am
I would like to retire with a reverse mortgage in WI, while my husband continues working in Oregon. Can I make WI my primary residence for purposes of the reverse mortgage if I live there over half the year, while my husband still works in Oregon? I assume we would have to file separately with IRS?
Thank you,
Stephanie
Posted on: 22nd Jan, 2011 11:05 am
If you stay in the property for most part of the year, then you will be able to claim it as your primary residence. In that case, you'll be able to get a reverse mortgage on it. However, you should be 62 years old in order to get a reverse mortgage.
Posted on: 24th Jan, 2011 01:33 am
You must reside in your house for at least 183 days per year in order for it to be considered your primary property (that's one day over 6 months). If you do, you can get the Reverse Mortgage.
Posted on: 26th Jan, 2011 08:26 am
Hello ~ I'm getting ready to retire. My husband is 69. In two years I will be 62.
My husband is under the impression that, when i ready 62 - or anytime thereafter - we would be able to get a reverse mortgage. We live in a condo in the SF Bay area. Our condo is worth 409,000 at the moment :( We owe 150,000. It is our only residence. Can a person get a reverse mortgage on a condo?
Thanks for your replies.
Posted on: 27th Jan, 2011 02:19 pm
you can get a reverse mortgage now, but only your husband can be on title. you can refinance the reverse mortgage with another one when you turn 62, and then you'll both be on title. start the refinance process 30 days before your 62nd birthday. when you refinance, the fha insurance premium will be prorated, reducing the refinance cost.

if you do it that way, you should be prepared to pay back the reverse mortage if he passes before you turn 62. a life insurance policy is usually suggested for this purpose. you can cancel the policy after you're back on title.

it's also advisable to receive distribution of your funds as a "credit line". that's the most cost effective way of doing a reverse mortgage, and ensures they'll be enough equity in your property when it's time for you to refinance. the second best choice is the monthly check option. the lump sum option isn't a good option for your scenario.

if you get the reverse mortgage now, you'll eliminate your monthly mortgage payment, have a credit line of $65,900.02, or monthly check for $430.49 - tax free.
Posted on: 27th Jan, 2011 07:37 pm
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