Reverse Mortgage Eligibility
Are You Eligible for Reverse Mortgage?
You qualify for Reverse mortgage if:
- You are age 62 or older.
- You own and occupy your home as your primary residence during the term of the loan.
- Your home is any one of the following (depending upon your Reverse mortgage provider):
- A single-family residence
- Property with 1-4 Units
- Town Houses
- Detached Homes
- Mobile homes built on permanent foundation after July 1976
- Coops ONLY in parts of New York & Los Angeles
Reverse Mortgage Products (Types of Reverse Mortgage)
In the US, there are 3 Reverse mortgage products which differ by type of residential property, payment types, processing fees, loan amount, and interest on the loan balance:
- Home Equity Conversion Mortgage: HECM or the Home Equity Conversion Mortgage is the most popular form of reverse mortgage product in the US, with more and more retirees opting for it. This product is automatically insured by the Federal Housing Administration. It may provide a growing credit limit, several payment options and a maximum loan limit that varies by location.
- Fannie Mae Home Keeper® & Home Keeper for Home Purchase®: Fannie Mae is one of the leading investors in the reverse mortgages market. It came up with its own reverse mortgage product in 1996, which is popularly known as “Home Keeper”. This is guaranteed by Fannie Mae and often has closing costs that are lower than HUD Reverse mortgages.
- The Private Cash Account Reverse Mortgage: Usually for homes worth over $500,000. This offers an appreciating credit line and flexible payment options but often comes with higher closing cost.