Who Can Get a Reverse Mortgage?

Reverse mortgages are popular with senior citizens who want to supplement their income. But not all seniors can qualify for a reverse loan just because they are 62 or older.

Who Is on the Title?

Remember that reverse loans are for people who actually own a home. Just being a resident in a home doesn’t qualify you for a reverse mortgage. Anyone who wants to borrow money this way must be on the title for a home. That means that if you married someone who already owned a home and he or she never added your name to the title, you cannot apply for a reverse home mortgage together.

Adding your name to the title isn’t a complicated process. The person who owns the home must draft and execute a new deed that transfers half the title to you. Title transfers aren’t handled the same in all states, so you may want to consult with an attorney or accountant so you understand all that is involved. Keep in mind that if you get a reverse mortgage with only one person on the title, and that person dies, the other spouse could find himself or herself homeless. Make sure you go over all the ramifications of who is and isn;t on the home’s title with a reverse mortgage counselor.

Reverse Mortgages and Home Equity

Have you lost a great deal of home equity as the housing market has struggled? If so, you may or may not qualify for a reverse loan. The deciding factor is going to be the home appraisal that determines what your home is currently worth. A home appraiser looks at the condition of a home, neighborhood, and comparable home sales in the area to determine property’s value.

One thing that could depress your property value is a high number of foreclosures in the area. The closer a foreclosure is to your home, the more it impacts your valuation. Id that’s the case, you may wnt to put off applying for a reverse mortgage until housing values come back in your area.

Reverse Mortgage Guidelines

You can find out more about whether you qualify for a reverse loan and how much you might be able to borrow by making an appointment with a housing counselor. You can also begin comparing reverse mortgage quotes here.

This entry was posted on Tuesday, April 27th, 2010 at 7:11 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.