The information you have provided us does not have sufficient criteria to evaluate your qualification for a reverse mortgage at this time.
Your loan to value ratio is .
Our current program allows at most a loan to value ratio.
There may be additional information or criteria that our loan specialists may be able to utilize to see if you can qualify.
The basic criteria for qualifying is as follows:
You must be at least 62 years of age or older.
You must own and live in your own home.
The home must be your principal residence.
Other qualifying factors are several and they include the age of the youngest borrower, the appraised value of your home, current interest rate and the current equity of the home.
As a courtesy to you we will have one of our licensed mortgage professionals contact you shortly and review the data and factors in your application process and provide you answers to help explain the circumstances involving your status.
*Please be advised that all information provided is deemed confidential and is solely used for the express purpose of facilitating a response to your inquiry. Further your information is not shared or in any manner distributed to any parties not affiliated with your specific inquiry.
Reverse Mortgages Are Loans Based On Equity In A Home
Reverse mortgages are not based on all of the equity you have accumulated in your home. The FHA has specific guidelines and calculations that determine the maximum loan amount which is based primarily on the age of the youngest borrower, value of your home based on a certified FHA Appraiser, and current interest rates.
The value of the home must also be sufficient to provide the borrower(s) with the amount needed to meet the need but to also cover all costs associated with the loan, including mortgage insurance, lender fees which include origination, appraisal, title, servicing, and other fees.
There Are A Variety of Distribution Options for Reverse Mortgages
There are 5 different reverse mortgage options:
Fixed equal monthly payments without a defined term;
Fixed term with equal monthly payments which stop at the conclusion of the term;
Flexible line of credit which enables the Borrower to access funds which needed up to a maximum draw or loan amount;
Combo line of credit which also includes Fixed monthly payment as along as you live in the home; and
Combo line of credit which also includes a Fixed Monthly Payment for a defined term.
Can I Lose My Home With A Reverse Mortgage?
Though there is some protection for homeowners, Borrower(s) must continue to satisfy key responsibilities and obligations such as:
Paying for utilities;
Homeowners and flood insurance; and
Though the majority of lenders monitor the loan to make sure the obligations are met, it is the responsibilities of the Borrower to make these payments. If a Borrower does not keep up on these obligations, the home can be foreclosed. It is important that Borrowers plan wisely to ensure they don’t fall behind and lose their home because for poor financial planning and budgeting.