Prior to April 27, 2015, seniors were not required to income qualify for a reverse mortgage. All they had to do was make sure there was enough equity in the home to qualify.
However, as of April 27, 2015, we can no longer just look at the home and order an appraisal. Seniors now have to qualify with their income as well. Doesn’t matter if you live in Visalia, Fresno, or anywhere else in the United States.
So, what exactly are the income requirements for a Reverse Mortgage?
First of all, we are going to look at the property taxes, homeowner’s insurance, and flood/HOAs on the property and make sure that all are paid and current.
Second, we need to see if you make enough money. This is a safeguard to insure that the senior will be able to pay their property taxes and homeowner’s insurance. So, how much do they need to make? Take a look at the graph to determine what region you are in and how many people are living in the home. For example, if you live in the West region and there are two of you in the home, you need to clear $998 per month.
We will be looking at social security income, pensions, investments and any other income that is bringing in a monthly amount. Once an income amount has been established, we must look at the accounts that you currently have open and what the minimum payments are on those. There is also a home maintenance fee that must be included which is $0.14 per square foot. Once all of the monthly expenses are calculated they are subtracted from the monthly income. Whatever is left determines if a senior qualifies for the reverse mortgage loan.
Now this is just a simplified version. To find out the details, please call me directly at 559-994-3692 or 800-779-1851.
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