July 21, 2003, Revised December 2, 2006, December 2, 2008, January 26,
2010, July 27, 2012
“I have an expensive house, not enough income, and no credit because I
just went through bankruptcy. Can I get a reverse mortgage on my home?”
Yes, there are no credit or income requirements, since borrowers don’t
assume any payment obligation. To be eligible for the major programs,
owners must be 62 or older, and must occupy the home as their permanent
residence. Eligible properties generally include one- family units,
condominiums, manufactured housing, and houses in planned unit
developments. 2-4-family units may or may not qualify. Mobile homes and
co-ops are not eligible.
July 27, 2012 note: But this will soon change. Because of a rise in
property tax delinquencies by HECM borrowers, FHA plans to issue new
qualification rules designed to weed out bad risks. See
Property Tax Defaults on
HECMs.
Seniors interested in a reverse mortgage can learn
about the various HECM options for drawing funds, and see how much they
can draw under each option from lenders certified by the professor, by
clicking HERE.
