Reverse Questions

Can Anyone Get A Reverse Mortgage?

Can anybody in Ashland get a reverse home mortgage loan?

Answer:

No. Not everyone in Ashland Oregon can apply for a reverse mortgage.

There are specific conditions you will need to meet in order to be eligible 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 blog contains information regarding HECMs, that are the most common type of reverse mortgage loans used in Ashland OR.

To be eligible for a HECM:

  • You have to be a minimum of 62 years old.
  • Your home has to be your primary residence.
  • You need to own your house in full, or have a small mortgage balance that could be paid off at closing with proceeds from the reverse home mortgage. There are limits to how much money you’re able to borrow. So, if you still owe lots of money on your standard mortgage loan, you may not qualify for a reverse house loan in Ashland.
  • You will need to have the funds to pay ongoing property charges which includes taxes and insurance coverage, and also repair and maintenance costs.
  • You also have to meet with a HUD-approved counselor to discuss your eligibility, the financial implications of the loan, along with loan alternatives.

The program requires that you consult HUD-approved reverse mortgage (HECM) counselor in Ashland or over the phone to discuss how a reverse mortgage works and how much it will cost you. The counselor has to be approved by HUD. FHA also requires that your house be in good condition. If your home is poorly maintained, you may have to fix it before you get a HECM reverse mortgage in Ashland.

When you’ve got a spouse or any other relatives living with you, think very carefully with regards to their housing needs before you apply for a reverse mortgage. Partners (or others living with you) can apply jointly as co-borrowers if both parties are 62 or older. For most couples, this is the smart choice if they decide to pursue a reverse mortgage. When spouses are listed as co-borrowers on their reverse mortgage, one spouse can stay in the property even if the other spouse passes away or may need to move to a an elderly care facility. Unwed couples, siblings, or others residing in the property can also apply jointly as co-borrowers and get the very same benefits, as long as 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 might be able to stay in the property after the borrower dies assuming they qualify as an “eligible non-borrowing spouse.” Once your non-borrowing partner turns 62, you might be able to refinance the reverse mortgage to add them, however there are expenses associated with refinancing a reverse mortgage in Ashland Oregon.

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