What are the qualifications to be approved for a Florida reverse mortgage? The first qualification of a reverse mortgage is the age of the individual who is seeking the mortgage. It goes without saying that any individual over the age of 61 and a half must also have a primary residence which is the security for the reverse mortgage loan.
Most single family residences are accepted by the Housing and Urban Development Department of the United States government which oversees the reverse mortgage lending market. Condominiums which are approved by the FHA, Federal Housing Administration are also potentials for reverse mortgages.
Equity requirements vary by age. As an example a 62 year old with a 50 percent equity position might be able to get a reverse mortgage, however in the same home with the same equity position an 80 year old senior would have no trouble with the 50 percent equity position.
When we started this blog we said age was the primary factor. Age is the primary factor in terms of how much the bank will lend against a given property. However, the house or condominium must naturally be approved in order to continue the process.
As previously mentioned most single family residences are approved by the FHA and will qualify for a reverse mortgage assuming there is an equity position of approximately 50% and given the age of the senior over age 61 and a half. Equity positions lesson or the requirement for equity lessons as the senior ages, there for an 80 year old senior may only need 40 percent equity in their home in order to make the deal work that a 62 year old in the same scenario needed 50% equity.
As discussed in our other blogs there are new requirements coming called the financial assessment guidelines? These guidelines will consider not only the age, the equity the type of home or condominium but also the senior citizens past track record of payments, current income, probability of ongoing income, current debt load and will require seniors to have a certain amount of residual income before they will be approved for the reverse mortgage.
Seniors who fail to meet all of the requirements may be subject to what is called a life expectancy settlements. This life expectancy settlement agreement basically reduces the amount the lender will be willing to give the senior and holds money back in order to pay for certain things such as real estate taxes homeowner’s insurance property dues and things of that nature.
Seniors interested in a reverse mortgage Florida should move forward before these guidelines go into place. These guidelines will also demand much more in the way of paperwork from the senior citizen.
Florida reverse mortgages continue to rise in popularity as the expense load and inflation continues to rise causing more and more seniors to need more. For more information, visit our web site at www.sarasotareverse.com
