Reverse Mortgages

What Is a Reverse Mortgage?

A reverse mortgage enables qualified borrowers to convert their home equity to meet their financial needs.

No required monthly mortgage payments to make while you are still in the home.

Loan proceeds can be disbursed in several different ways, including a combination of options.

Value of home, available equity, borrower ages and interest rates will determine maximum loan amounts.

Approval is not based on Income or Credit.


How Do I Qualify for a Reverse Mortgage?

3 Major Qualifications (Really this simple)

  • Age - All borrowers must be 62 or older
  • Occupancy - Subject property / home must be the primary residence
  • Property Type - Must be SFR, 1-4 Unit property, approved PUD or Condo

Home must have enough equity to cover any lien payoffs, loan fees, interest accrual and servicing fees

Mandatory third party counseling is required for all reverse mortgages prior to application.

You do not have to worry about credit score or income requirements facing conventional mortgage customers today


Key Factors

Factor Conventional Mortgages Reverse Mortgages
Major Qualification for Loan Income, Assets, Credit History and Employment Home Value and Age of Applicant(s)
Minimum Age to Qualify 18, 21 62
Primary Factor Used to Qualify for Loan Borrower's ability to repay Home Value and Age of Applicant(s)
Maximum Loan Amounts and Loan-To-Values Driven by Home Value and Borrower's Credit History Driven by Home Value and Age of Borrower(s)
Credit Scores Used to determine LTV and maximum loan amounts Not used at all
Allowed Occupancy Types Primary Residence, Second Homes, Investment Properties Primary Residence only
Proving Income, Assets and Employment Generally required on most loans Only needs to be stated, never verified or used for qualification purposes