What kind of credit score do you need for a reverse mortgage?

There is no minimum credit score requirement for a reverse mortgage, primarily because the main thing lenders want to know is whether you can handle the ongoing expenses required to maintain the house. Lenders will, however, look to see if you’re delinquent on any federal debt.

Can a reverse mortgage loan be denied?

You might be disqualified if the amount you’re approved to borrow in a reverse mortgage isn’t enough to pay off your existing mortgage and sustain you in the home. When that happens, you can wait until you’ve made additional principal payments on your mortgage and increased your equity.

When do you get a reverse mortgage on a home?

You can also get a combination of monthly installments and a line of credit. The amount available under the loan is based on how much equity the borrower has in the home. The reverse mortgage loan typically becomes due when you: sell the home.

Can a condominium be approved for a reverse mortgage?

Condominiums are an eligible property type for the reverse mortgage program. There are some additional steps they must go through to be approved, but they are acceptable once they meet all conditions. Does FHA need to approve my condo?

Can a reverse mortgage be a nonrecourse loan?

Proprietary reverse mortgages come in a variety of different forms, but most are nonrecourse loans (which means the lender cannot get a deficiency judgment) where borrowers qualify for the loan based on: their age the home’s value, and prevailing interest rates.

Can you keep the rental income on a reverse mortgage?

Expert Answer. As the owner, the rental income is yours and so yes, you would still collect it and keep it. The last issue is the current mortgage. Any liens or mortgages on the home would have to be paid in full with the reverse mortgage so that the reverse mortgage was the only loan on the property at closing.