In order to be eligible to apply for a reverse mortgage loan you need to be at least sixty two years of age or older. You also need to be a homeowner and you need to own your home outright or at least have a low balance on the mortgage.
Also in order to get the loan and keep it you need to remain living at the house and you need to always make sue the taxes for that property are paid and up to date. However before you obtain the loan you are required to get information and assistance from an HECM counselor and this is either free or a super cheap fee. This can be done online or even over the phone.
There are a lot of different things that you need to keep in mind when it comes to applying for and obtaining a reverse mortgage loan.
You need to know that there are a few different kinds of loans for reverse mortgages out there and certain ones are meant for certain people as well as certain uses. Also a reverse mortgage is extremely different from a home equity loan and the two should not be confused.
The main difference between the two is how with a reverse mortgage the lender is the one who pays you; you do not pay the lender.
However the amount of money that you can get for your reverse mortgage varies and is based on a lot of different aspects. Such as the age of the person who is applying for the loan, if the person has a spouse or not and the age of that person, what the current interest rate is, the sales price of the house, the lesser of the appraised values of the house (only being able to reach a maximum of six hundred and twenty five thousand and five hundred dollars as well as what the initial premium was for the mortgage insurance and more.
If this is something new to you or you are not sure about some things you can seek out help and assistance from an estate planning service in order for them to help you find the right reverse mortgage lender for you but you should not ever go to anyone who is requiring you to pay a fee because they referred you to someone else.
You also need to keep in mind that for everything to be proper the lender for your reverse mortgage loan needs to be approved by the FHA and all of the approved lenders can be found online at or you can even get in touch with an HECM counselor.
Know that you have options out there, and the right option for you is there you just may need some guidance to get there. But know once you get the perfect reverse mortgage loan then you should not ever have to worry again.