Reverse Mortgages 101

Since you don't have to make payments with a reverse mortgage, your income and credit history are usually not evaluated, except for federal liens if you are getting a federally insured reverse mortgage.

Generally you must:

• Be at least 62 years old.
• If the home is jointly owned by more than one person, all owners must be age 62 or older.
• If one owner is younger than 62, it is possible to qualify by taking the person's name off the deed. However, if the older person enters a nursing home or dies, the property will have to be sold - which leaves the younger person in a difficult situation.
• Own your home.
• Occupy the property as your primary residence (live in your home more than half the year.)
• Have equity in your home. It doesn't matter if you have a mortgage. The key is whether there is equity (the difference between debt on the property and the market value.)
• The home is a single-family property, 2-4 unit building, federally approved condominium, or planned unit development. Cooperative apartments and mobile homes generally do not qualify.
• There is no maximum on the value of the home.

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