reverse mortgage, HECM, FHA, HECM for purchase, HECM saver, adjustable rate HECM, fixed-rate HECM, HECM fees, HECM defaults

Need Good Credit For a Reverse Mortgage?
July 21, 2003, Revised December 2, 2006, December 2, 2008, January 26, 2010, July 27, 2012

“I have an expensive house, not enough income, and no credit because I just went through bankruptcy. Can I get a reverse mortgage on my home?”

Yes, there are no credit or income requirements, since borrowers don’t assume any payment obligation. To be eligible for the major programs, owners must be 62 or older, and must occupy the home as their permanent residence. Eligible properties generally include one- family units, condominiums, manufactured housing, and houses in planned unit developments. 2-4-family units may or may not qualify. Mobile homes and co-ops are not eligible.

July 27, 2012 note: But this will soon change. Because of a rise in property tax delinquencies by HECM borrowers, FHA plans to issue new qualification rules designed to weed out bad risks. See Property Tax Defaults on HECMs.

Seniors interested in a reverse mortgage can learn about the various HECM options for drawing funds, and see how much they can draw under each option from lenders certified by the professor, by clicking HERE.
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