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Yorba Linda Reverse Mortgage Question - Do we qualify for a Reverse Mortgage?

Mortgage and Lending with Orange County, Corona, Riverside, Los Angeles NMLS#203003

July 11, 2011 02:36 PM

Do we qualify for a

Reverse Mortgage?

If you are homeowners and are over the age of 62, you just might. Some things to know in order to determine whether or not you are eligible. First - do you have enough equity? The amount of money you can borrower on a reverse depends upon 3 things.

Age of Youngest Borrower.
Expected Rate
Lesser of the Home Value or FHA Lending Limit. (Currently at $625,500.00, but may be lowered October 1)

It is not the normal 80% of home value, more like 50 to 70 percent. Once you know if you have age and equity on your side, then you need to look to the home itself.

Single Family homes in good condition.
Some FHA Approved Condos.

Next, take a look at how you hold title. Are you in a trust? Most, but not all trusts do qualify for a reverse mortgage, however the lender and title company will want to review it before issuing your loan.

What about your credit? Though income and credit score is not an issue, if you have a tax default, federal debt or another FHA loan there may have some hurdles.

If you have more questions, I’d be happy to discuss it in more detail. You can also talk with a HUD Approved HECM Counselor. Your questions and comments are encouraged! If you’d like to ask me a question you can enter into “Comments” or email me at the link to the right.