Reverse Mortgage is very helpful in ensuring that elderly are able to meet their financial requirements easily. These can be because of Healthcare, financial security, or even leisure activities like touring around the world!
The process of reverse mortgage has also become safer and easier over the years. But even before you avail reverse mortgage, it is important for you to know whether you are indeed a right customer for reverse mortgage – as it is not for everyone.
To help you out in doing so, here is a small questionnaire to quickly identify if you are a right customer for reverse mortgage schemes:
Questions 1-4 are absolute requirement for reverse mortgage
- Are you above 62 years of age?
- The house you live in your main residence?
- Are you owning close to 100% equity in the house (small debt is fine)
Is your house an approved type for HECM. The approved types are given below:
- Simple family home or 1-4 units home where atleast one unit is occupied by the borrower as his principal home
- HUD approved condominium
- Manufactured homes meeting FHA requirements
Questions 5-11 require due consideration, self-evaluation and weighing various options – it is MUST to spend time and answer them before you go ahead.
- You have little or no income from other sources as in such case your Medicaid benefits can come under radar
- Your family as a whole is happy about this decision
- You have already considered and ruled out other options to generate cash for yourself, including selling present house and shifting to a smaller one etc.
- You are very sure of the things you want to accomplish by the reverse mortgage money. You have planned how to spend it or atleast have good idea what you will do with it
- You understand that a reverse mortgage is an expensive way to borrow money and should be used in cases when other ways are not available
- You have consulted a counselor and are satisfied with his answers
- You have understood all terms and conditions for a reverse mortgage and feel it is the best option for you to raise money
The answers of all the above questions have to be yes for you to be an ideal customer for reverse mortgage. While answers to 1-4 are straight forward and have to be compulsorily affirmative in case of 5-11 you will have to arrive at a decision collectively by considering options and consulting experts.