Over the past few years Reverse Mortgages have been on the wrong end of media commentary, but what they don’t discuss is how Reverse Mortgages can be the perfect solution for certain clients. There are a few simple rules to follow to make sure a Reverse Mortgage is the right choice for you and your family.
- Have at least 35% equity in your home.
- Are at least 62 years old (youngest spouse).
- Need extra cash to pay medical bills, credit cards, or other bills.
- Want to stay in your home for 2 years or longer.
- Don’t have a need to leave the home as inheritance.
Reverse Mortgages can be a perfect solution for certain people, the government has strict regulations and guidelines to insure that elderly clients are taken care of fairly and without prejudice.
- Income Qualifying is very easy.
- Credit Score does not matter.
- BK, Foreclosure and Short Sale are all OKAY.
- You can make payments, no need to let the equity be used for a payment.
Going through Reverse Mortgage counseling is key and mandatory, counseling is open to the clients children and/or a caring relative, so they can learn the benefits and options of Reverse Mortgages.
It is important to talk to a reputable Mortgage Banker about Reverse Mortgages and to do your due diligence on anyone soliciting your business.