Reverse Mortgage Requirements
Reverse Mortgage Requirements-Eligibility, and Qualifying? Building up equity in a home is no small feat. For seniors who have built equity in their homes and would benefit from a stable monthly income, reverse mortgage is worth consideration. Also known as a home equity conversion mortgage (HECM), a reverse mortgage translates home equity into monthly payments, while seniors stay living in their homes. At Reverse Mortgage Alabama, we guide seniors as they navigate through the process of exploring and obtaining a reverse mortgage. Because of their unique, federally backed opportunities, reverse mortgages have certain requirements and are not available to everyone.
Eligibility for Reverse Mortgage & Requirements for Your Property
To qualify for an HECM loan, your property must be:
- A single-family or 2-4-unit home that you will continuously occupy.
- A Housing and Urban Development-approved condominium.
- A manufactured home that meets HUD requirements.
Getting Started with Reverse Mortgage
For more information on the eligibility requirements of a reverse mortgage, contact Reverse Mortgage Alabama today. We have helped hundreds of clients in Birmingham, and surrounding areas such as Vestavia, Hoover Mountain Brook. We have a Huntsville office and can serve surrounding areas such as Cullman, Decatur, and Madison. Reverse Mortgage Alabama will help you achieve financial security while continuing to live in your home with Reverse Mortgage.
Reverse Mortgage Requirements and Eligibility
To be eligible for a HUD reverse mortgage, HUD’s Federal Housing Administration (FHA) requires that the one of the borrowers is a homeowner, 62 years of age or older; you own your home outright, or you have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home. We then share a detailed cost analysis and comparison breakdown. We provide each candidate with a printed version of the Reverse Mortgage Comparison Breakdown as well as review the breakdown with each senior candidate to ensure they understand the options and benefits of different Reverse Mortgage scenarios.
Before a Reverse Mortgage application is written, we will provide you with the name of a professionally trained HUD approved counselor and arrange for them to furnish you with an expert objective overview and discuss with you all the Reverse Mortgage options.
We strongly encourage all senior candidates to reach out and seek advice from loved ones: family and friends, as well as financial and/or legal advisers regarding their decision to move forward with a Reverse Mortgage.
Upon your acceptance and approval, we will submit the Reverse Mortgage application to our processing team, who once again reviews the selected program to further ensure a proper and educated decision has been made.
Our processing team then submits the application to our underwriting department. Underwriting will perform a secondary review of the program and product choice.