Reverse Mortgage Qualifications

Eligibility Requirements

1. All homeowners on title must be age 62 or older and occupy the
   property as their principal residence.
2. Any existing mortgage balances must be small enough to be paid off
   by the reverse mortgage.
3. The property must be an owner-occupied single-family home, two,
   three or four unit dwelling.
4. Town-homes, detached homes, condominiums, planned unit
   developments (PUDs) and some manufactured homes are eligible.
5. The home must meet HUD minimum property standards and, in some
   cases, necessary home repairs can be made after the closing of your reverse
   mortgage.
6. There are no income and minimal credit qualifications (credit scores do not count).
   

Determining Loan Amounts

Loan amounts vary and are based on several factors. Please review the following factors and if you have any questions, please don’t hesitate to contact one of our Loan Professionals toll-free at (877) 407-1041.


The maximum amount that can be borrowed is based on the following factors:

1. The age of the youngest homeowner.
2. The appraised value of the home.
3. The current interest rate.

In general, the more your home is worth, the older you are, and the lower the interest rate, the more you’ll be able to borrow

Costs can be Included in Your Loan
All of the normal loan costs can be included in your loan balance. Just like a standard mortgage loan, reverse mortgage costs include appraisal, credit report, title insurance, legal fees, loan origination, and recording fees.

Interest Charges

• Variable Rate - The interest rate adjusts monthly and is tied to the LIBOR index plus a margin.  Just like a home equity line, you are not charged interest on money that has not been withdrawn.
• Fixed-Rate - The interest rate on the fixed-rate HECM reverse mortgage is fixed for the life of the loan, with rate as low as 5.56%. Unlike the varialbe rate option, the fixed-rate HECM requires that the borrower(s) take all of the money available at the time the loan closes.

Accessing Funds
You have unique needs and you may prefer to get the entire amount upfront, while others would prefer a steady monthly payment. Regardless of your needs, you can get your money however you wish and change the loan distribution as often as you wish to accommodate changing needs.

You have unique needs and you may prefer to get the entire amount upfront, while others would prefer a steady monthly payment. Regardless of your needs, you can get your money however you wish and change the loan distribution as often as you wish to accommodate changing needs.

Reverse Mortgage Distribution Options  

1. Lump Sum – Cash is immediately available
2. Term – Equal monthly payments for a fixed period of months selected.
3. Tenure – Equal monthly payments as long as at least one homeowner lives and continues to occupy the property as a principal residence.
4. Line of Credit – A credit line which the customer can draw upon as he or she wishes.
5. Combination – Any combination of the above plans.