Qualifying for a Reverse Mortgages
Loan for borrowers over the age of 62 with no principal and interest payment. These loans may be used for purchase or refinance. These loans may be used to eliminate a current mortgage with a monthly principal and interest payment or may be used to take equity out of a home or both.
Since a reverse mortgage does not require a principal and interest payment, income and reserves are not critical. Potential borrowers must simply demonstrate the ability to pay ongoing tax and insurance bills, which remain your responsibility. The amount you can qualify for on a reverse mortgage is dependent on the appraised value of property, age of borrowers and current interest rates. For more information, contact your First Equity Loan officer.
In terms of qualifying for the loan, there are four areas to consider:
Credit
A credit report is obtained but this program qualification is not based on credit scores.
Collateral
The home being purchased will be appraised to determine fair market value. If the appraiser states in the report that there is a health and safety concern, then a contractor's inspection or repairs may be needed.
We are here to help
Message us if you have additional questions, would like to get Pre-Qualified, or would like a quote. Let First Equity be your guide through the loan process.