However, there are requirements to meet when applying for a reverse mortgage. You must be 62 years old; or older, but there isn’t an upper age limit. The older you are the higher amount you’re eligible for. Also, if you and your spouse are on the loan, then both your ages are considered. If you are in poor health, it doesn’t matter because there aren’t any health or disability restrictions. Your marital status isn’t an issue either. You can be married, widowed, single or divorced. Many seniors that are married; however, will have both of the spouses co-sign the loan as a measure of security. If one spouse should become ill which would require them to move from the home, then co-signing would secure the residence for the remaining spouse. Your income and other income resources are not factored in for eligibility. The loan is secured against the home and is insured by the Federal Government. It doesn’t matter where your home is to be eligible, but it may affect the loan amount. Plus, if your live in a high value home value than you can be eligible for a higher amount.
So why and when is a reverse mortgage a good idea? There are many reasons why a reverse mortgage is a good idea for a senior who is short of cash. Below is a list of reasons you may want to consider if you’re thinking about taking out a reverse mortgage.
1. You may be in a situation that you need home modifications if you are disabled or need home health care; or perhaps to take out a long term care insurance policy. By taking out a reverse mortgage though, you would be allowed to age in place and be independent instead of having to go to a nursing home if you can’t afford your home anymore without it.