Who Can Apply For A Reverse Mortgage?
Can anybody apply for a reverse home loan?
Answer:
No. Not everyone may apply for a reverse mortgage.
There are specific conditions you must satisfy in order to be qualified to apply for a reverse mortgage. The most common type of a reverse mortgage is called a Home Equity Conversion Mortgage (HECM). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs.
Note: This webpage contains information about HECMs, which are the most common type of reverse mortgage loans used in Corvallis Oregon.
To qualify for a HECM:
You must be a minimum of 62 years old.
Your home has to be your principal home.
You will have to own your property outright, or have a low mortgage balance that can be paid off at close of escrow with proceeds from the reverse mortgage loan. There are limitations to how much cash you are able to borrow. So, if you still owe lots of money on your conventional mortgage, would likely not be eligible for a reverse mortgage loan in Corvallis.
You must have the income to pay ongoing property charges including taxes and insurance, in addition to maintenance and repair expenses.
You must also meet with a HUD-approved counselor to talk about your eligibility, the financial implications of the home loan, along with loan alternatives.
The program requires that you consult HUD-approved reverse mortgage (HECM) counselor in Corvallis or over the phone to discuss how a reverse mortgage works and how much it will cost you. The counselor must be approved by HUD. FHA also mandates that your property be in good condition. In case your home is poorly maintained, you may have to fix it before you could get a HECM reverse mortgage in Corvallis.
Should you have a spouse or other relatives living with you, think very carefully with regards to their housing needs before you apply for a reverse mortgage. Spouses (or others living with you) can apply together as co-borrowers if all parties are 62 or older. For the majority of couples, this can be the best option if they decide to pursue a reverse mortgage. When spouses are listed as co-borrowers on their reverse mortgage, one spouse can continue to reside in the home even if the other spouse dies or may need to move to a nursing home. Unmarried couples, siblings, or others residing in the house can also apply together as co-borrowers and receive the same benefits, so long as all borrowers are over age 62.
Note: Occasionally one spouse may not yet be 62, and therefore won’t qualify as a co-borrower. A non-borrowing spouse may be able to remain in the home after the borrower dies if he or she qualify as an “eligible non-borrowing spouse.” After your non-borrowing partner turns 62, you may be in the position to refinance the reverse mortgage to include them, however there are costs associated with refinancing a reverse mortgage in Corvallis Oregon.
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