According to Investopedia, managing your available retirement funds to help live out your golden years without struggling to maintain your lifestyle, is a challenge that many senior homeowners and baby boomers alike struggle with. The Government insured Reverse Mortgage has afforded many senior homeowners the opportunity to do just that while maintaining their quality of life by staying in their home or giving them the option to stay in their home as long as the maintain it as their primary residence. Some of the best features or pros, associated with doing a reverse Mortgage are as follows:
The ease of qualifying for a Reverse Mortgage. Their are really only 4 main qualifications associated with obtaining a Reverse Mortgage. First and Foremost, at least one borrower must be at least 62 years of age or older. Second, the property must be occupied as your primary residence. Third, the property must be a single family residence, a 2-4 unit multiple family home that is occupied in 1 unit by the borrower(s), an FHA approved condominium, or a manufactured home that meets certain criteria by the Federal Housing Administration. The fourth, and probably most important qualification, is that you must have sufficient equity in your property. Equity is defined as the difference between the amount of existing lien(s) on the property and the appraised value of the property. The amount of equity required to qualify for a Reverse Mortgage is based on the age of the youngest borrower.
Another feature or pro of obtaining a Reverse Mortgage is the understanding that it is a Non-recourse loan, meaning their will never be any additional debt passed on to the family or heirs of the senior homeowner(s). This allows the senior homeowner to have peace in knowing that a debt will be passed on after their demise. This feature is offered on any Reverse Mortgage that is insured by HUD, The Department of Housing and Urban Development, which insures 98% of Reverse Mortgages today.
Perhaps, the best feature or pro when obtaining a Reverse Mortgage is the lack of income or credit requirements currently. Most senior homeowners living on a fixed income could not qualify for a any other type of mortgage based upon their debt to income ratio. The lack of credit score requirement also help senior homeowners due to the lack of credit or low credit score based upon the lack of use.
The above features or Pro’s are something that every Senior Homeowner trying to obtain a Reverse Mortgage should know!!!