Any person who is 62 or older and owns their own home qualifies for a reverse mortgage. If you already have a mortgage on your home, that’s OK. You qualify as well, but with the reverse mortgage proceeds you will have to pay off your existing mortgage.
To qualify for a Reverse Mortgage the homeowner will furnish enough information to prove the ability to pay the property taxes, homeowner’s insurance and maintain the property each year. Credit score does not determine the interest rate, which is different than a forward mortgage loan.
The amount of money a person can realize from a reverse mortgage depends on the value of their home (fair market value of home based on a current appraisal) and the exact age of the youngest homeowner. The prevailing interest rate at the time a reverse mortgage is obtained also affects the amount that a person can receive from a reverse mortgage.
In this U.S. Government program, HUD requires that you meet with a HUD approved credit counselor, who is approved to do reverse mortgage counseling. The counselor’s job is to educate you about reverse mortgages, to inform you about alternative options available to you given your situation, and to assist you in determining which particular reverse mortgage product would best fit your needs if you elect to get one.
State of Texas Disclosures:
Pursuant to the requirements of Texas administrative code, Title 7, Section §81.200(c),You are hereby notified of the following: Consumers wishing to file a complaint against a Mortgage Banker or a licensed Mortgage Banker Residential Mortgage Loan Originator should complete and send a complaint form to the Texas department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas 78705. Complaint Forms and Instructions may be obtained from the department’s website at www.sml.texas.gov. A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed mortgage banker residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov.