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.
Reverse mortgage 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 reverse mortgage loan amounts.
Approval is not based on Income or Credit.
3 Major Qualifications For Reverse Mortgages (Really this simple)
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 Texas reverse mortgages prior to application.
You do not have to worry about credit score or income requirements facing conventional mortgage customers today.
|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|