While not yet a reality, the changes that will very soon be enacted by the
Department of Housing and Urban Development might affect who will qualify for a
reverse mortgage in the future. The main focus of these changes is making sure that those who apply for a reverse mortgage have enough income to continue paying their current financial obligations–such as your homeowners insurance property taxes–and/or living expenses.
How will these changes directly affect senior homeowners looking into a reverse mortgage?In the past, the
inability to pay your homeowners insurance and property taxes have led to foreclosures or evictions. When these changes come into play, however, a new form of financial assessment will be added to the already established reverse mortgage qualifications, which include 62 years of age and older, live in your primary residence and have enough equity in your home.One of the big barriers to homeowners seeking a reverse mortgage will be borrowers with delinquent credit, who may not longer qualify under the new set of parameters. The reasons behind seniors’ inability to pay financial obligations aren’t clear as the previous guidelines did not take into consideration income or credit requirements.The most important safeguard in place still continues to be mandatory financial counseling before applying for a reverse mortgage. The
recent funding by the
FHA and
HUD will go a long way in helping to determine your ability to pay your homeowners insurance and property taxes in order to avoid foreclosure. A reverse mortgage might be the savior you are looking for during retirement, but it’s important to note that there are guidelines that determine your eligibility for a reverse mortgage which must be adhered to.At
PS Financial Services, we disclose everything to the best of our ability, helping you determine if a reverse mortgage is what you’re looking for. Let us know at (888) 845-6630 or via email at
info@PSReverseMortgage.com.