Bend Reverse Mortgage Question - I already have a mortgage, can I still qualify?
You may still qualify for a reverse mortgage if you currently have a loan on your property and have sufficient equity. The reverse mortgage loan proceeds must be used to completely payoff off the current loan and the reverse mortgage must be the only loan on the property after the loan closes. If the reverse mortgage proceeds are not sufficient to payoff the existing loan balance the borrower may provide funds for closing provided they are not “borrowed” funds. Gift funds are acceptable.
I have had borrowers withdraw money from their retirement account combined with a reverse to payoff their existing mortgage. Their reasoning? “I’d rather pay money upfront and never have a house payment again, than continue to pay for the next 23 years on my mortgage!” It can make perfect sense.
You may still qualify for a reverse mortgage if you currently have a loan on your property and have sufficient equity. The reverse mortgage loan proceeds must be used to completely payoff off the current loan and the reverse mortgage must be the only loan on the property after the loan closes. If the reverse mortgage proceeds are not sufficient to payoff the existing loan balance the borrower may provide funds for closing provided they are not “borrowed” funds. Gift funds are acceptable.
I have had borrowers withdraw money from their retirement account combined with a reverse to payoff their existing mortgage. Their reasoning? “I’d rather pay money upfront and never have a house payment again, than continue to pay for the next 23 years on my mortgage!” It can make perfect sense.
To find out how much you may qualify for you can speak with a reverse mortgage consultant, or visit the Reverse Mortgage calculator.
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