This may be your golden opportunity to secure a reverse mortgage loan. Here at Strock & Tanner Mortgage Corporation, we specialize in helping senior homeowners repair their credit, putting them on the road to recovery with a reverse mortgage loan. Even if you've been turned down for a regular home loan before—or don't think you can qualify—we can help you review your reverse mortgage options.
The simple answer to this is “yes.” In recent years, with the decline of the housing market, FHA restrictions have become tighter to ensure borrowers are financially capable of paying back loans, but you can still qualify with bad credit. New regulations put in place to qualify for a reverse mortgage include:
Even if you have poor credit, you can still qualify for a reverse mortgage. Lenders are given the freedom to determine extenuating reasons when deciding whether or not to grant a reverse mortgage. If you are experiencing financial difficulties that could be solved by a reverse mortgage, then a poor credit history will not stop approval. According to the HUD (Housing and Urban Development), "The extent to which the HECM may provide the solution to these financial difficulties must be taken into account during the financial assessment.” In simpler terms, if the reverse mortgage can help you pay your financial obligations, the lender must consider that as a substantial factor during the approval process.
In many cases, even if you have a less than ideal payment history, or insufficient assets, approval may be a possibility if the lender is willing to withhold some of the funds from the reverse mortgage to assist in debt payments. Although this lowers the amount of spending money available, in this scenario both the borrower and lender are protected.
Good people often have bad credit. In life, there are many things that cannot be planned for, such as a job layoff, an illness, a death in the family, or an accident. Because reverse mortgages are not like traditional mortgage loans, they can be granted even if you have a poor credit score. Unlike traditional mortgage loans which are based solely on income and good credit, reverse mortgages are made available for those who have home equity and are above the age of 62.
To be considered for a reverse mortgage, you must have equity in your home. In other words, you must either own your home, or have a mortgage that can be paid off with the money gained from the reverse mortgage. In most cases, the total quantity of the reverse mortgage loan will need to be lower than 80% of the value of your home
To qualify for a reverse mortgage, your home must be your primary residence. If you decide to move or enter a medical facility, you will lose eligibility for the reverse mortgage and the loan must be repaid in full.
If you get a reverse mortgage, it is does not remove your obligation to pay for insurance and taxes on your home. Throughout the duration of your reverse mortgage, you must continue to pay for tax and insurance expenses.
For your home to qualify for a reverse mortgage, it must be on a permanent foundation. Consequently, mobile homes typically do not qualify. If you own a condominium, it may qualify depending on a variety of factors.
Often times, many people are misled and believe they do not qualify for a variety of different reasons. You may be able to qualify for our reverse mortgage loan program even if you fall into any of the categories below:
At Strock & Tanner Mortgage Corporation, we understand that this process can be confusing and overwhelming, and we want to give you all the information you need to make an informed decision. We are on your side and want you to make the best decision to help you create a stress-free retirement.
Our professional reverse mortgage consulting staff works with you!. We realize that everyone is different. That's why we treat you like an individual, on a one-to-one basis. And it's why our reverse mortgage consultants work with you every step of the way. Everyone is unique and has different incomes, asset bases, and credit histories.
Regardless of the challenges that you think you may have, you owe it to yourself to give our reverse mortgage consultants a quick call to determine how we can help you change your life. Our entire staff specializes in understanding the needs of the senior community.