Obtaining a reverse mortgage will soon be harder. As of May 1, 2015, new regulations will take affect that will require reverse mortgage lenders to follow stricter guidelines. Part of the change includes lenders performing credit checks on borrowers, like traditional mortgages. Applicants for a reverse mortgages, who must be at least 62 years of age and own their house outright, will also have to demonstrate financial means to pay back the loan. Although this makes no sense, since a reverse mortgage does not require the payment of the mortgage monthly, they would be required to prove they can pay the real estate taxes and homeowners insurance and association fees, for at least the two years prior.
To find out if you are eligible, call us today. The first consultation is always free and will advise what you qualify for.
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Jacqueline A. Salcines