Requirements for a Reverse Mortgage
To receive a reverse mortgage, there are certain requirements that have to be met. Once you receive the reverse mortgage, you still have to meet and maintain other requirements. If you violate any of the stipulations, you may be required to pay off the loan immediately. There must be equity in your home to receive a reverse mortgage.
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Age requirement
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To get a reverse mortgage, you must be 62 years of age and be a homeowner. The older you are, the more money for which you are eligible.
Residence
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If you are receiving a reverse mortgage, you must live in the home instead of renting it out.
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Income
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If you are a homeowner with low income, you can qualify for single-purpose reverse mortgages offered by the local or state governments.
Counselor
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To apply for a home equity conversion mortgage, you must meet with a counselor who will explain all of the terms, other options, as well as the costs and fees involved. These are offered by the federal government and guarantees lenders will meet requests.
General expenses
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After receiving a reverse mortgage, you must pay the property taxes, insurance, maintenance and repair, and utilities. If you don't comply, your reverse mortgage loan could become due and payable immediately.
Warning
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If you move, sell the property or die, the reverse mortgage loan must be paid in full.
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