Reverse Mortgage Basics: Qualifying for a Reverse Mortgage

What does it take to obtain a reverse mortgage?  Whether you are looking to use a reverse mortgage to either refinance or buy, there are basic requirements that every borrower must meet.  Here they are:

• Borrower must be at least 62 years of age
• Property must be your primary residence 
• Property must be maintained routinely and meet FHA appraisal inspection
• A minimum of 50% equity needed for a refinance or 50% down payment needed for a purchase (note:  these are average percentages and vary by age of youngest borrower) 

In addition, every borrower(s) must pass the Financial Assessment as required by the Housing and Urban Development department (HUD).  The Financial Assessment requires each borrower(s) to have sufficient income to meet monthly housing and credit expenses, as well as a satisfactory 24 month payment history of those said expenses.  There is no minimum FICO score required, and there is some flexibility with each borrower's scenario and the opportunity to explain if any extenuating circumstances have occurred. Note that every applicant's situation may be different, and therefore loan approvals are reviewed and granted on a case by case basis by way of a complete underwriter review.

Check back for more reverse mortgage basics topics.

For more information on reverse mortgages and other related topics contact:

Rick R. Rodriguez

Certified Reverse Mortgage Professional (CRMP)

NMLS# 473353

Toll Free (877) 500-0454

Local (702) 460-6222

www.reversemortgagecertifiedprofessional.com