To qualify for a reverse mortgage in the United States, the borrower must be at least 62 years of age and must occupy the property as their primary residence. Because no monthly payments are required, there are no minimum income or credit requirements. One of the biggest benefits is that all the proceeds from the loan can be used at the borrowers discrestion and is not subject to income tax payment.
Before starting the loan process, applicants must take an FHA approved counseling class and present a certificate of completion of the course. The counseling is meant to serve as a safeguard for the borrowers and to ensure they completely understand what a reverse mortgage is. The maximum lending limit varies by county, but may not exceed $625,500.00. The loan size a borrower qualifies for is determined by the borrower's age, the lesser of the value of the home or county lending limit, and the interest rate of the program the senior selects.
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