Reverse Mortgage 101

The steps to a Reverse Mortgage are the same in a “Traditional (Forward) Mortgage as in the Reverse Mortgage.

…… the difference only lies in the qualification process and the repayment process.

In a Reverse Mortgage:

There is “No Income” requirements for the reverse mortgage, no credit score… and

There is no repayment requirements for as long as continue to occupy the home.

1. The amount of equity you can access depends, in part, on your age. The older you are, the more money you qualify for. The age of the youngest person on title will determine how much money you are able to receive.


2. You do not need to own your home free-and-clear to consider a reverse mortgage. In fact, one of their most popular uses is the elimination of a monthly mortgage payment. As an example, a retired couple on a fixed income with a $1,200 per month mortgage payment would give themselves a $1,200 a month raise in cash flow if they replace their current mortgage. Many seniors that could not afford to retire because of a mortgage obligation have been able to do so after eliminating their monthly payment through a reverse mortgage.

3. Counseling by a HUD approved independent third-party is required for all borrowers undertaking a reverse mortgage as a consumer protection. Counseling may be conducted face-to-face or by telephone.