You should understand that there are a number of scams that are targeting senior citizens. As a result of this, you need to talk to an attorney if you are thinking about applying for a reverse mortgage. Make sure you understand that reverse mortgages can only be availed by older people as you have to be at least 62 years old to qualify. On the other hand, you need to live in the house as the title holder and homeowner. Remember that you cannot live in some other place during the process of reverse mortgage.
Rules and regulations
You need to own your house entirely and completely. Nevertheless, there is the exception that if you owe the bank money, you should pay off the rest of the mortgage with the money you get when signing the reverse mortgage papers. It is better to have a house with just one family or a two to four unit house. In the latter, you need to live in one of the units. In addition, HUD approved condos and some manufactured homes are also eligible to get a reverse mortgage but Co-ops and mobile homes will not qualify for this purpose.
Get in touch with an attorney
It is very important to visit a Home Equity Conversion Mortgage (HECM) counselor before you apply for a reverse mortgage. You should ask them about the advantages and disadvantages along with the information about the legitimacy of the company processing your mortgage. Seek an official appraisal of your house just before you apply for the mortgage. This will tell you the worth of your house and how much cash you qualify for considering various factors like size, condition, age, etc.