The Requirements For The Borrower Are Minimal And Are Listed Below
Age qualification: All borrowers listed on title must be 62 years old, but with one exception: for married couples, only one spouse need be 62.
Primary lien: A Reverse Mortgage must be the primary lien on the home. Any existing mortgage must be fully paid using the proceeds from the Reverse Mortgage.
Occupancy requirements: The property used as collateral for the Reverse Mortgage must be the primary residence. Vacation homes and investor properties do not qualify.
Taxes and Insurance: Borrowers must remain current on their real estate taxes, homeowners insurance, and other mandatory obligations, including condominium fees.
Property Condition: Borrowers are responsible for completing mandatory repairs and maintaining the property in livable condition.
Conveyance of the mortgaged property by will or operation of law to the estate or heir after death:When a Reverse Mortgage becomes due and payable upon the death of the last surviving borrower and the property is conveyed by will or operation of law, the estate or heirs may satisfy the debt by paying either the mortgage balance or 95% of the current appraised value of the property, whichever amount is less.