Requirements and Application Qualifications Needed to Apply for a Reverse Mortgage

Despite the good news you may have read about reverse mortgages, the fact remains that they are like any other loan. To get the best deal, you need to get quotes from at least three programs. In order to close a deal with the lender, you need to apply and then pass certain application requirements before you are approved.

There are many senior citizens who are looking to complete a reverse mortgage application. The reverse mortgage program that receives the largest number of applications is the Home Equity Conversion Mortgage (HECM). Most seniors apply to this program.

The FHA insures the HECM loan, which is a division of the U.S. Department of Housing and Urban Development (HUD). If you are one of these applicants, check if you meet the following requirements and qualifications before you apply:

•Requirement 1 - You are at least 62 years old,

•Requirement 2 - You own your own primary residence,

•Requirement 3 - Your home is a single-family home, a one-unit to four-unit dwelling, a condominium unit or some other HUD-recognized dwelling unit (trailer homes and cooperative houses are excluded),

•Requirement 4 - Your home meets the HUD's standards, and

•Requirement 5 - You have already talked with a reverse mortgage counselor regarding the program.

You can apply for an HECM reverse mortgage anywhere if you meet the requirements and qualifications. HECM is available in many States – the requirements and qualifications are more or less the same. It is also available in Puerto Rico and the District of Columbia. It is always a good idea to get a quote from at least three lenders.

With HECM loans, the older the senior applicant, the greater the loan amount he or she can apply for. If, for example, the equity on your home equals $250,000 you can qualify for a $110,000 loan assuming you are of minimum age. At 76 years old, your new qualifications can get you a $149,000 loan. The actual loan amount is derived from the FHA’s mortgage limit in your area.

Reverse Mortgages Written Thru the following lenders!