Those commercials about reverse mortgages are attractive, aren’t they? I remember seeing the late former Senator Fred Thompson in those commercials talking about these mortgages. They do seem to provide an interesting solution for seniors needing extra money for retirement adventures. However, what all needs to be considered to see if these loans are right for you?
First of all, it’s not just whether these reverse mortgages are a good choice but also whether or not you qualify at all. There are certain requirements of course, and the main one that would get your attention first is the fact that you need to have equity in your home, quite a lot of equity. Furthermore, the company you choose isn’t going to let you take out a reverse mortgage for the entire amount.
It’s preferred that there is no money owed on a home, but you’re not necessarily going to be left out if you do have a small balance on your mortgage. How much do you still owe? If you owe nothing, you can move past this first step. Now, how old are you? You’re going to have to be 62 years old to sign for a reverse mortgage.
I saw a website about HUD reverse mortgages, and that might be an option for you. People often think that people applying for these types of mortgages approved by HUD are for people who had FHA loans or mortgages with FHA insurance. That’s not the case, however, as anyone eligible for a reverse mortgage, in general, can apply for HUD’s version.
Now you also may be wondering if your particular property would qualify. I would want to know if I were in your position because I own a condo. Do you own a condo? Perhaps you own a manufactured home, and you’re not sure if that is going to qualify you or not. Do you own the land that the built home sits on? There is a chance that you can still get one of these mortgages if you have a manufactured home. The same goes for condo owners.
My condo is a vacation property, so I’m hoping that would qualify me. I plan not to have to take out a reverse mortgage, but you never know what’s going to happen until you retire. All you can do is the plan, and it’s nice to have options. Think about the people who were set to retire right before the recession and the significant drop in the stock market. Those people were thrown a curve ball. It happens, that’s for sure.
My mom was thrown a curve ball planning for retirement. She owns her home outright, but so far hasn’t taken out a reverse mortgage on the property. She has a 401k that she planned on building for a few more years, but she is living off of it now. After she turns 62, social security will join in, and she knows that should be enough. By that age, she becomes eligible for one of these loans, though. It’s an option that is available if she ever needed it.