If You Cannot Qualify For a Traditional Forward Mortgage, You Cannot Qualify For a Reverse Mortgage

FACT: FALSE!! This is what makes this loan so superior for a retired, soon-to-be retired, fixed income, or older adult. The Reverse Mortgage loan is not a loan based solely upon credit or income, as in a traditional, forward mortgage loan. It is an “Equity and Mortality” based loan program. The more equity you have and the older you are, the more cash will be available to you.

Yes, your credit, income, and housing obligation payment history will be reviewed. The Reverse Mortgage lender wants to be sure you have the “willingness (desire)” to pay your financial obligations when due, and the “capacity (incoming money)” to do so. However, these loans are not based entirely upon these factors. Many times, we are able to arrange to pay the property taxes and insurance or do the housing repairs through the use of the cash equity.

Examples:

● You have been turned down (as you don’t income-qualify) to refinance your home or your HELOC (Home Equity Line of Credit).

● You have been through a Chapter 13 bankruptcy (and may not credit qualify) and would like to remove the forward mortgage principal/interest payment.

Solution: Look to the use of a Reverse Mortgage in these situations.

Disclaimer: The information provided is based upon education, solid knowledge, experience, and research; however, it should not be considered professional legal advice. Consult a legal professional with regard to your specific situation.