You must
meet several conditions before you can qualify
for a reverse mortgage. You must be 62 or
older and own your own home, condominium, or
townhouse, and live in it as your primary
residence. Co-op owners typically will not
qualify for a reverse mortgage. Most lenders
also require that there be no other debt against
the home. If you still owe some debt on your
home, you can arrange to pay it off with some of
their reverse mortgage payments.
The amount of the reverse
mortgage is based on the value of the home,
so your credit history is not a significant
factor. The age of the borrower, interest rate,
and loan fees will also factor into the amount
of the reverse mortgage.
As long as you are living in
the house, maintaining the home, and paying the
property taxes and insurance, you do not need to
pay back the loan. In addition, payments from
your reverse mortgage will not affect your
ability to collect Social Security, Medicare, or
pension benefits.
