Learn more about Reverse Mortgage Options, Qualifications, and Programs
Until recently Senior Citizens who were house rich but cash poor were able to count on a government sponsored loan program commonly known as a reverse mortgage to access equity in the home without the need to sell or move.
For those who qualify this program will allow a senior home owner to liberate some of their homes equity and provide need cash to cover living expenses.
However, recent changes to the reverse mortgage product have severely limited the availability of the program for many seniors because of reductions in equity access and increasing qualification standards.
The most notable of these changes is the “financial assessment” requirement.
This means that seniors must now prove enough income to pay all housing and living costs and have money left at the end of the month.
Inability to pass this litmus test will result in a requirement that a substantial amount of the loan proceeds be in escrow to assure payment of property taxes and insurance for as long as the senior is expected to live.
This will eliminate 50% of those otherwise able to qualify.
Will you still qualify for a reverse mortgage, and is it the right option for you?
Find out more here:
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