Eligibility & Safeguards for Reverse Mortgages

Eligibility & Safeguards for Reverse Mortgages

Eligibility Requirements for Reverse Mortgages:

  1. Homeowner is 62 years of age or older
  2. Home is a primary residence
  3. Any Government liens or loans have to be paid current; this can be done through the proceeds of the reverse mortgage loan
  4. The reverse mortgage loan amount needs to cover the balance of the current mortgages; if not, the homeowner has to come to the closing table with the difference
  5. Homeowner must provide a signed reverse mortgage counseling certificate

What are the Consumer Safeguards on Reverse Mortgages Required by Law?

  1. Independent counseling to review the reverse mortgage, offer alternatives and answer questions
  2. Limits on interest rate, origination fee, and repayment amount
  3. Advance disclosure of all costs and fees