Qualifying for a reverse mortgage is based on a number of factors, including your age, the value and location of your home, and the amount owed on your home. Ultimately, reverse mortgages allow you to access equity in your home; if the equity is not there, a reverse mortgage will unlikely be an option.
One of the benefits of a reverse mortgage is also its downfall for those who do not have sufficient equity in their home. While the amount of money that can be loaned varies with reverse mortgages, it is often not higher than 50% of the value of the home. Therefore, if you don’t have 50% of the value of your home in equity, you will not qualify for a reverse mortgage.
If you have sufficient cash from other sources to pay the difference between the amount which can be loaned through a reverse mortgage and the amount needed to satisfy the outstanding mortgage, a reverse mortgage may still be an option. Visit our FAQ page for more information on reverse mortgages.