Who are Candidates for a Reverse Mortgage: .........and who are not.
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First the Header above is indicating that I am going to try to clarify who is a candidate for a reverse mortgage and those who is not. Second, please understand, this part of my education is proceeding on the premise that you qualify as a borrower, have an eligible property and the overall structure of the transaction is acceptable. Technically, you are not a candidate if that is not the case, you can click on the image in the box to the left to enlarge the diagram and see if you are from a transaction structuring point of view. Third, one more point I should stress is, just because you and your situation quality, are eligible or acceptable to FHA and the lender, just the same, you still may not be right for a reverse mortgage. That all depends. Below I will quickly rule out who is not a candidate and if you want extreme details you can refer to the page in my blog called 4 tiers of home ownership. To get a feel for it you are a candidate, when reading the "Expanded RVM Strategies" sub-page under "Reverse Mortgages 301" has appeal the you likely are a candidate.
This 2008 mortgage meltdown lead to many regulators creating new rules to follow requiring documentation of borrower's income to confirm suitability of programs.
Starting in 2015 Reverse Mortgage Loan applications started collecting information to confirm the homeowner has had a track record of paying their property taxes and homeowners insurance timely and will have the modest income requirement to pay such property ownership requirements in the future.
This Site is Not Tax or Legal Advice. Always consult Legal Counsel and Your Tax Advisor. Content of website are the sole opinions of Robert Fulton & does not necessarily reflect those of Fulton Financial Consultants, Inc.'s Investor/Lenders or insurance companies or other product vendors. Because one of my product lines is that of Reverse Mortgages I must state the following: If the borrower does not meet loan obligations such as taxes and insurance, then the reverse mortgage will have to be repaid." The Terms, benefits and features shared as accurately as possible on best efforts basis and subject to change without notice. Therefore please discuss any decision making specifics with Robert Fulton 360-222-3236. "This material is not from HUD or FHA and has not been approved by HUD or any government agency."