You may qualify for a
Determining eligibility is very easy. Although reverse mortgages are becoming common place and there is a lot of media coverage about them, many people are still a bit hazy about what the basic eligibility requirements are.
Some seniors are under the impression that to be eligible for a reverse mortgage all one needs is to own a home, regardless of how much is still owed on the current mortgage balance. They think of a reverse mortgage as a typical conventional refinance transaction where the loan amount can be very close to the value of the home. However, this is not the case.
There must be substantial equity in the property. Minimally, the amount of equity should be in the neighborhood of 50 to 60% of the appraised value, depending on the ages of the homeowners and the current interest rate. The equity requirement is at last the expected life time of the youngest owner on title to the property.
For example if the youngest homeowner has just turned 62 (which is the minimum age requirement to be eligible for reverse mortgages) the money being paid out to the seniors from the built up equity, could potentially last 30+ years.To be eligible for a reverse mortgage here are the main criteria: