In order to qualify for a reverse mortgage, you’re going to have to meet a couple basic requirements, you must be over sixty-two years of age and have sufficient equity in your home.Most people won’t get a reverse mortgage until their home is completely paid off, but you may still be eligible even you are still making payments. But if you’re still making payments, the balance must be completely paid off with the reverse mortgage.
For example, if you have a balance on your mortgage of $10,000 and you’re eligible for a reverse mortgage of $100,000, you would have $90,000 left over after you paid off your mortgage. Use a reverse mortgage calculator to estimate how much you qualify for. You can find one at http://www.reversemortgage.org/About/Reverse-Mortgage-Calculator.;
, Not every house will qualify for a reverse mortgage. To be eligible for a reverse mortgage, a home must generally be a single family dwelling.


Under certain circumstances, multi-family structures may qualify. If you live in a structure with four units or fewer and occupy one of the units as your primary dwelling, you should be eligible for a reverse mortgage.
 Even if you want to get a reverse mortgage on a single family home, you must also show it is your primary residence. You will need to show you reside in your home at least 183 days out of the year, and each year after you receive your loan, you will need to sign an Annual Occupancy Certificate. , One of the conditions of obtaining a reverse mortgage is the completion of a loan counseling session. The lender cannot recommend a specific counselor, but is required to give you a HUD approved list of counselors in your area. A lender cannot give you a reverse mortgage unless you have a valid HECM Counseling Certificate.A counseling session should take about an hour and a half (or longer if you need more time), and can be completed over the phone or done in person. They usually cost between $100 and $200, although some organizations offer it free of charge.
The counselors should explain the terms and conditions of a reverse mortgage to you, paying attention to the advantages and drawbacks unique to your situation. They should also conduct some preliminary calculations determining whether you could afford a reverse mortgage when taxes, insurance, repairs and the like are included.
Different types of reverse mortgages have different costs associated with them, and when you complete the counseling session, the counselor is legally required to provide you with the Total Annual Loan Cost (TALC). That way you can make a side by side comparison and decide which one is best for you.
 You might want to choose someone you have worked with in the past on financing, or a professional who is highly reputable and comes recommended.It’s best if your lender is a member of the National Reverse Mortgage Lenders Association (NRMLA) . Members must meet certain operational and ethical standards, including keeping up to date with current law and best practices through continuing education programs. You can find an NRMLA member at http://www.reversemortgage.org/Find-a-Lender.
You may also be able to find a broker that works with an NRMLA lender who could get you a better deal.
 The application process for getting a reverse mortgage is similar to getting a conventional mortgage. The lender will investigate your financial situation and evaluate whether they think you can afford the costs associated with a reverse mortgage. Be prepared to provide:Any records of your income, including wages, salaries, pensions, retirement accounts, SSI, Social Security, and any other income you may have.
Records of your expenses, such as utilities, insurance payments, any debts (including mortgages), and taxes.
You should also be prepared for an inquiry into your credit history. If there are any lingering negative items on your credit report, it would be best to talk to your old creditors and resolve them.
 This can sometimes take up to 30 days. The lender will conduct a title search and check for liens or other issues that might challenge your ownership of the house. Once you’ve secured approval, you should choose how you want your payout. Your reverse mortgage loan can be structured in a variety of ways:The loan can be structured as a line of credit. The borrower can access the line of credit at any time for whatever reason, although there may be limits on how much can be accessed in a time period. The unused balance of the line of credit actually grows in value as the home increases in value.
The loan can be structured as a monthly payment for a fixed number of years, known as a term payment plan. The buyer receives the same amount of money each month even if the value of the home decreases.
The loan can be structured under a tenured payment plan, which means that the buyer gets a monthly payment for as long as they remain in the home, even if the amount of payments exceed the loan value.
 When a loan is "clear to close," underwriting and financials are complete and your application has been approved. Once you’ve decided to close with a lender, speak with a real estate attorney in preparation for the closing.Your attorney should make sure the interest rate, loan amount, fees and terms of repayment are what you and the lender previously agreed to. In addition, they should review the contract for any terms which might be to your disadvantage.
The closing costs and assorted fees are usually between $1200 and $2800, not including origination fees. Origination fees are 2% of the first $200,000 and 1% thereafter, with a cap of $6,000 total. These costs can usually be folded into the mortgage, but you should be aware of them. , If everything is satisfactory, go ahead and sign the paperwork. Most lenders will cut you a check immediately or send it to you by overnight mail. If part of the reverse mortgage will be going to pay off your existing mortgage, the lender should get a check to them immediately as well.If you think one of the other payment plans may be more advantageous to you, you are entitled to change it for whatever reason.
 Since the upfront costs of a reverse mortgage can be so high, it doesn’t make sense to get one if you’re going to leave the house in a few years. If you are, it’s probably better to get a conventional home equity loan, or second mortgage.If you’re having trouble paying your taxes, see if your county has property tax deferral programs. If you need the money to make repairs, a HELOC, or home equity line of credit, is almost certainly a better option for you.
 Getting a reverse mortgage won’t impact your Social Security retirement or your Medicare benefits, but you’ll probably lose your Medicaid and SSI if you take a reverse mortgage. If you have more than $3,000 in liquid assets, it automatically removes you from Medicaid eligibility. Once the money’s spent, you can reapply, but it does pose a problem for certain retirees.
 A reverse mortgage literally does act as if it is reversing your original mortgage. Your equity is paid back to you on a monthly basis, creating a balance on the mortgage.When the homeowner dies, the title to the house can pass onto their heirs, but the heirs have to satisfy the amount of the loan or forfeit the deed.
Make sure you meet the special requirements.
Decide if your house meets the requirements.
Demonstrate that the home is your primary residence.
Attend a counseling session.
Find a lender who you trust to manage your reverse mortgage.
Fill out the application.
Wait for approval and choose the format of the loan.
Schedule a closing date with your lender once the loan is "clear to close.",
Sign the paperwork and wait for your check.
Don’t take out a reverse mortgage if you plan on leaving the home soon.
Consider the impact on Medicaid or SSI benefits.
Look for other options if you want to pass the home onto your heirs.
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