Michael Bell
Michael Bell, Redfin CorporationPhone: (707) 548-1611
Email: [email protected]

What is a reverse mortgage & how do you qualify?

by Michael Bell 02/06/2023

Two individuals holding hands

A home is a big investment. As you continue to own a home, it builds equity over the years. This article provides a basic guide of reverse mortgages and how they put the power of your home’s equity back in your grasp.  

What are reverse mortgages? 

A reverse mortgage is a program meant for elders aged 62 and up. It allows them to borrow some of the equity that has built up for their home in the form of a loan. A reverse mortgage lender offers participants to choose a loan type. From there, they can decide if they want a line of credit or lump sum of funding. 

How do you qualify for a reverse mortgage loan? 

To qualify for a reverse mortgage loan, you have to meet these criteria: 

  • Owner of the property bust be at least 62 years old
  • Home must be completely owned or be mostly paid off
  • Must show finances are available to continue paying property taxes
  • Property must be the primary residents 

Once you’ve qualified and been approved for this kind of loan, it’s then time to decide which loan type you’ll utilize. 

Reverse mortgage Types

There are multiple loan types to choose from: 

  • HECMs or Home equity conversion mortgages can be used for almost anything. They are supported by Urban Development and the U.S. Department of Housing
  • Single-Purpose Reverse Mortgages are more affordable. They can be provided by the state and can be used for specific reasons specified by the loan lender. 
  • Proprietary reverse mortgages are not supported by the government. They come with their own requirements for eligibility. These loans are private and easy to obtain. 

Reverse mortgages are helpful for life expenses. Speak with a reverse mortgage lender today to explore your next loan options.

About the Author
Author

Michael Bell

In twenty five years of real estate sales and marketing experience, I have sold hundreds of properties, while developing detailed knowledge of Sonoma & Napa area communities. I am a life-long resident in the North Bay and after a full day at work, I enjoy spending time with my four children, and participating in their many school and recreational activities. 

Over the years, my clients have expressed diverse plans and dreams. I seek to truly understand and appreciate my clients' goals, focusing my efforts on realizing them. It has been fun learning more about the unique opportunities that attract people to the area such as the culinary community, the viticulture and wine industry as well as outdoor adventure tourism. It is important to me to listen to my clients, do what it takes to serve their needs and I am dedicated to treating everyone involved in a transaction both in a personal and professional manner. I work hard to anticipate and respond to the routine tasks at hand as well as the complex challenges that come up during real estate transactions while ensuring my goal to deliver you the outcome you desire.