You have probably heard it a lot of times before, that you must thoroughly understand reverse mortgage before taking out one. Supposing you already have complete understanding and appreciation of this mortgage arrangement and are ready to sign up, here are the qualifications that you need to remember.
You must be 62 years or older in order for you to benefit from the reverse mortgage facility. This arrangement is primarily set-up for the senior citizens in their retirement. It is designed specifically for the senior consumers to be able to make use of their home equity in advance. Most retirees do not find the need to keep the home especially when the rest of the family have gone on to build their own houses. Some would prefer to spend their years in a senior facility where they can continue the social interaction with the community. Reverse mortgage allows them to keep open the possibility of selling the property while they capitalize the financial aspect of their house.
The property must be your primary residence and in your ownership. The registration and the land titles must indicate your full ownership of the house. This must also be the residence that you continuously occupy and not simply a vacation house. Primary residence holds a higher assessment in the reverse mortgage appraisal. The point is for you to reap the benefits of your primary home equity while you reside in it. It is giving you the privilege to be doubly rewarded by your efforts. A secondary home will not give you that much of morale boost as with a primary home.
As mentioned earlier, you must have understood the consequences and conditions of a reverse mortgage; therefore, you must have attended and completed the counselling program before taking up the contract. The counsellors will answer all your queries and enlighten you about the myths surrounding reverse mortgage.
The home to be mortgaged must meet Federal Housing Authority standards and be well maintained. Just because it is mortgaged does not mean you can set repair issues aside and let it depreciate. Remember that your home will be eventually sold and the proceeds will be used to cover your mortgage payments. You must take extra care in ensuring that your abode will command a high price in the property market. Otherwise, you will suffer the consequences of an undervalued house and receive less than what it is really worth.
You must see to it that all the necessary real estate taxes and insurance have been settled. This also affects the selling point of your house. These days property buyers are smart and will pay with good money if they know that the house is in great shape with complete and updated documents.
If you are indeed ready to take out a reverse mortgage, then you can look forward to a much improved senior life with better financial flexibility. It does not work for everyone but it did great for most of reverse mortgage borrowers and it could work well for you too.