Qualifying for new things when you reach age 62, also known as retirement age, is not uncommon. You might get discounts and advantages from local businesses just for being a retiree, for example. Another advantage you potentially qualify for is reverse mortgage qualification.
Why You Might Want to Qualify for a Reverse Mortgage
You might be asking yourself why you should even bother trying to qualify for a reverse loan, as opposed to a more traditional home mortgage. The answer is going the traditional route means you will start to receive mortgage bills and payment deadlines. You cannot afford to miss those deadlines. When you are already feeling financial stress, adding to it that way does not make much sense.
To avoid the stress of a traditional loan, you may want to turn to a reverse mortgage. There are several advantages of applying for a regular reverse mortgage or a jumbo one. The terms of jumbo reverse-loans are similar but allow you to borrow extra money if your property has higher value. With either type of reverse loan, not having a monthly mortgage to worry about paying is definitely one of those advantages. The reverse mortgage discourages any type of early payment. It is only years later when you need to repay it, and you do so mostly in your own way and time, unless an issue arises that suddenly goes against the agreement you have with your lender.
Personally Qualifying for a Reverse Mortgage
You cannot get a retiree-only reverse mortgage if you are under 62 years old, but you may still qualify if you are that age but not fully retired. So do not let the concept fool you. Other than age, the biggest requirements are you need to own your home, be willing to keep maintaining it as homeowner for years, and prove that you can do so. You also must agree to keep living in the home while you have the loan agreement.
Making Sure Your House is Reverse Mortgage-Friendly
It also takes a reverse mortgage-friendly house to get such a loan. To be reverse mortgage-friendly, it must be the main residence you use. If you own a property with rental units, it could potentially still qualify. However, you must yourself reside in one, and the property can only have a few units. The home must also be assessed for value. If the value is not very high, borrowing against it may not be reasonable.
Traditional Loans and Reverse Loan Qualification Negation
A traditional loan you might already have does not negate your ability to apply for a reverse mortgage just because you have it. However, you are required to pay it off as soon as you get a reverse mortgage. Therefore, less money for you to actually spend will be available. If there is not enough left over to make it worth it, you might reconsider applying. However, using a reverse mortgage to rid yourself of ongoing traditional mortgage payments may be worth it, even if you do not have as much as you might like left to spend in the end.
Your Reverse Mortgage Qualification and Other Assets
If you have cars or other assets, you are not disqualified from getting a reverse mortgage automatically. Nor are those assets ever in danger. The reverse mortgage agreement allows only the home itself to go on the market if you fail to eventually repay what you owe. Other items you own stay in your possession.
Thinking About Your Needs Before Reverse Mortgage Application
A reverse mortgage might sound great to you, and it may well be your best choice. However, thinking about your needs is essential before you apply. That is not just to make sure the mortgage type is best for you. Knowing what you need also helps you lay out the exact parameters of the reverse mortgage contract, if you choose to apply.