How Tighter Credit Conditions Affect Getting A Reverse Mortgage

If you are 62 or older and looking for some help with medical or retirement problems and you are thinking about getting a reverse mortgage but your credit is almost maxed out. You really don't have to worry. A reverse mortgage is different then a regular mortgage in the fact that is not determined by your debt to availability ratio. Because you will not have any payments as long as you live in the home.

The best way to see if a reverse mortgage is right for you is to understand what they are. They are back by the U.S Department of Housing and Urban Development or HUD for short. It is a safer plan for older Americans that own their home or only have a little left on it.

Many seniors use it to help with SSI, pay off bills or improve retirement. For most people their home is there biggest of not only investment they have. They can make it their nest egg.

What is a Reverse Mortgage? A reverse mortgage is a loan backed by the FHA that lets those who own there home and are older to convert their equity in their home to cash. You have been paying on your mortgage all your life and have been building equity. They also offer you no repayment of the loan as long as it is your main home unlike the traditional mortgage that needs monthly payments.

What do I Need to Qualify for a Reverse Mortgage?
To be able to get a reverse mortgage you need to be 62 years old or older, own your home or have a low enough balance on it to pay it off when you get your loan, and it must be the home you live in. You also have to have a counseling session on the loan before you can get it.

What is the Difference Between a Reverse Mortgage and a Regular Equity Line of Credit? When you go for a regular equity line of credit or second mortgage you have to have the income and debt ratio to get the loan, you are then required to start paying monthly payments, 30 days after you use the loan. A reverse mortgage is different in that regardless your debt or income it is available to you if you meet the few guidelines that are listed in the previous question. You also don't have to make any payments as long as you live in that home.

You still have to pay all property taxes and insurances like everyone else. That would be nice to get a loan and all you have to worry about is the utilities.