Who Can Apply For A Reverse Mortgage?
Can anybody in Salem apply for a reverse home loan?
Answer:
No. Not everyone in Salem Oregon can apply for a reverse mortgage.
There are specific conditions you have to meet in order to be qualified for a reverse mortgage. The most common type of a reverse mortgage is called a Home Equity Conversion Mortgage (HECM). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs.
Note: This webpage has specifics about HECMs, which are the most common kind of reverse mortgage loans used in Salem Oregon.
To be eligible for a HECM:
You will have to be at least 62 years old.
Your house needs to be your principal residence.
You should own your house in full, or have a small mortgage balance that can be paid off at close of escrow with proceeds from the reverse home loan. There are limits to how much cash you are able to borrow. So, if you still owe a ton of money on your conventional mortgage loan, you might not be eligible for a reverse house loan in Salem.
You will need to have the cash to pay ongoing property charges which includes taxes and insurance coverage, in addition to repair and maintenance expenses.
You must also meet with a HUD-approved counselor go over your eligibility, the financial implications of the loan, along with loan alternatives.
The program requires that you meet with a HUD-approved reverse mortgage (HECM) counselor in Salem or over the phone to discuss how a reverse mortgage works and how much it will cost you. The counselor will have to be approved by HUD. The FHA also requires that your house be in good condition. If your house is poorly maintained, you may have to fix it before you could get a HECM reverse mortgage in Salem.
In case you have a spouse or any other relatives living with you, think carefully with regards to their housing needs before you apply for a reverse mortgage. Husbands and wives (or others living with you) can apply jointly as co-borrowers if all parties are 62 or older. For the majority of couples, this can be the most suitable choice if they decide to pursue a reverse mortgage. When spouses are listed as co-borrowers on their reverse mortgage, one spouse can continue to stay in the house even if the other spouse dies or may need to move to a nursing home. Unmarried couples, siblings, or others living in the property can also apply jointly as co-borrowers and receive the exact same benefits, provided all borrowers are over age 62.
Note: Occasionally one spouse might not yet be 62, and for that reason won’t qualify as a co-borrower. A non-borrowing spouse may be able to stay in the property after the borrower dies if they qualify as an “eligible non-borrowing spouse.” As soon as your non-borrowing spouse turns 62, you may be qualified to refinance the reverse mortgage to include them, but there are expenses related to refinancing a reverse mortgage in Salem Oregon.