This BLOG On Can I Qualify For A Reverse Mortgage If I Am Still Working Was UPDATED On July 4th, 2018
How Can I Qualify For A Reverse Mortgage If I Am Still Working?
- A Reverse Mortgage is not for everyone
- To qualify, the homeowner needs to be at least 62 years of age or older
- Homeowners need equity in their homes
- Without any equity, a senior homeowner will not qualify
- HUD, the parent of FHA has launched the FHA Reverse Mortgage For Seniors
- There are no credit nor income requirements on HUD FHA Reverse Mortgages
- Reverse Mortgages are equity-based loan program
- What this means is that lenders underwrite the reverse mortgage based on the equity a homeowner has and not the borrowers credit or debt to income ratios
- This is due mainly because homeowners are not required to pay any monthly principal and interest payments as long as the homeowners live in their homes, sell their home, or passes
In this article, we will discuss and cover Reverse Mortgage Guidelines.
Can I Still Qualify For A Reverse Mortgage If I Am Still Working?
The answer is yes. It’s actually easier if borrowers are working because of the recent law changes. As a matter of fact, most lenders would prefer that borrowers are still working because this will make it easier for borrowers to income qualify. What….? Income qualify…..?
Reverse Mortgage Guidelines
Yes, reverse mortgage borrowers have to income qualify in order to qualify for a reverse mortgage.
- As of April 27, 2015, reverse borrowers have to prove they are able to afford to pay taxes and insurance in order to qualify for a Reverse Mortgage
- There is a great reason for this
The only way, for all practical purposes, homeowners can get foreclosed on in a Reverse Mortgage is if don’t keep up with their Real Estate taxes, and homeowner’s insurance.
Property Taxes And Insurance
What’s happening across America is the mismanagement of public funds, public pension problems, and political side deals are causing taxes to rise to pay for sins of the past, and current and future political sins to come.
- Seniors are watching Real Estate taxes, and all their other taxes and expenses rise as their income doesn’t
- So it is important to make sure they can at least pay their Real Estate taxes and their Homeowners insurance
No Income Maximum Limits On Reverse Mortgages
An actually HUD Consultant called and asked this very question: Will my mom still qualify for a Reverse Mortgage if she is still working? The answer was yes. She will be more likely to qualify.
- For those who don’t know what a HUD Consultant is, it is someone who is an expert on HUD or FHA Property Condition Rules
- A Reverse Mortgage appraisal would have to conform to these rules. If it didn’t, the borrower would have to make repairs to the property to meet “FHA Health and Safety Standards” before a Reverse Mortgage could be made
- Ironically, I never expected a HUD consultant to ask if his mother would qualify for a Reverse Mortgage if she was still working
So if borrowers have a job currently, and are earning social security or some other retirement, it is much more likely that they will be likely to qualify for a Reverse Mortgage.
July 4, 2018 - 3 min read