Qualifications for a Home Equity Conversion Mortgage/Reverse
Must be primary residence/62 and older
A Home Equity Conversion and other reverse mortgages can only be done on your primary residence. Once you are no longer living in the home for 12 months, move out, rent the home or pass away the loan must be paid off.
You must be 62 years of age to be on the loan. Don't worry if you have a younger spouse, you may still be able to get the loan. The youngest persons age is used for the calculation as to how much will be lent to you. Every situation is unique. Let's crunch the numbers and see if it makes sense for your situation. The younger spouse can remain on title and stay in the home even with the older spouse is no longer living.
Credit score
As far as the Home Equity Conversion Mortgage (HECM) we don't consider your credit score, but we do look at payment history. If you have had late payments in the last 2 years we will need an explanation. We want to make sure you are able to pay your debt obligations. You will need to still pay you property tax, home owners insurance and any HOA dues. Some other types of reverse do consider credit score, and we can discuss if another program is right for your situation.
Income
I will help put all pieces of income together. If you don't have a substantial amount of income, you may still be able to qualify. Many people qualify just using social security income. We consider all debt, but we also consider all assets, including the funds available from the loan proceeds.
Rebecca Porter NMLS# 299106
