Eligibility Requirements
There are two main requirements about a reverse mortgage. They are that the youngest homeowner must be 62 years old or older and have that there must be adequate home equity in the home.
Influences eligibility:
- Current interest rate
- If the rate is variable or fixed
- Location of property
- Age of the youngest homeowner
Does not influence eligibility:
- Income
- Credit score history
- Discharged bankruptcy
- Health of homeowners
This site does have a free reverse mortgage calculator. Please feel free to use this resource to see if you may have enough equity to qualify for a reverse mortgage.
FAQs
I am not 62, but I am on disability. Can I qualify?
No. All homeowners must be over the age of 62 to qualify for a reverse mortgage
I already have a mortgage, do I still qualify?
Yes, most people that take out a reverse mortgage use the proceeds to pay off their existing mortgage.
Do all seniors over the age of 62 qualify?
No, about one third of homeowners are not eligible because they do not have enough equity built up their home. The younger the homeowner is, the more equity they need to qualify.
What happens if there isn’t enough equity?
This is called a “shortfall” because the reverse mortgage does not contribute enough funds to pay off the existing mortgage. If this is the situation, some homeowners choose to make up the difference by paying down the balance on their mortgage by the amount of the shortfall so that they can still qualify.
