Homeowners looking to qualify for a reverse mortgage need to understand a few things first. There are some requirements which must be met, but are easy to qualify for. Here are some requirements for a reverse mortgage.

Here are the requirements for a Reverse Mortgage:

-All current mortgages which may exist are required to be paid off with the money from a reverse mortgage, or personal savings.

-If you have a pending bankruptcy, the process may be slowed if it is not finalized, prior to starting a reverse mortgage.

-Certain homes may not qualify at all for a reverse mortgage, while mobile and other types of homes need to meet certain requirements to get approved. For example, the mobile home must be on a permanent surface, and built after 1976. This is just one example.

-Before getting approved for the reverse mortgage, homeowners have to get counseling from HUD which will help prevent the homeowner from making a bad decision. Also, this counseling will more easily provide a clear picture of what you are potentially getting yourself into.

-As of writing this, the current lending limit, regardless of the homes actual value, is $625,500. This amount was increased in early 2009 from $417,000.

-The most a home loan origination fee can be is $6,000 and this is the absolute maximum.

These are pretty much all the reverse mortgage requirements there is. As you can see, many homeowners qualify because of the ease of getting approved.

Any money left, or gained from the reverse mortgage can be spent however the homeowners wishes. While a reverse mortgage may not be the best or right option for some homeowners, many people can benefit from one.

-M Petrone
www.RefinancingCondo.com

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