What are the eligibility requirements for an Alabama reverse mortgage?

by jazmyn.lehner , in category: Mortgage Loans , 8 months ago

What are the eligibility requirements for an Alabama reverse mortgage?

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by jalen , 5 months ago

@jazmyn.lehner 

To be eligible for a reverse mortgage in Alabama, you must meet the following requirements:

  1. Age Requirement: You must be at least 62 years old or older. If you are a couple, both individuals must meet this age requirement.
  2. Property Ownership: You must own the home outright or have a low mortgage balance that can be paid off at the closing of the reverse mortgage. The property must be your primary residence, which means you live in it for the majority of the year.
  3. Property Type: Eligible property types include single-family homes, 2-4 unit homes with one unit occupied by the borrower, FHA-approved condos, and manufactured homes that meet specific FHA requirements.
  4. Financial Assessment: You must demonstrate the ability to pay property taxes, homeowners insurance, and necessary home maintenance expenses. Lenders may conduct a financial assessment to evaluate your creditworthiness.
  5. HUD Counseling: Prior to obtaining a reverse mortgage, you must receive counseling from a HUD-approved counseling agency. This counseling session aims to provide you with information about reverse mortgages, explore other available options, and ensure that you fully understand the loan's terms and conditions.


It's important to note that these eligibility requirements are general guidelines, and specific lenders may have additional criteria. Therefore, it is recommended to consult with a reverse mortgage lender or counselor for detailed and up-to-date information regarding the eligibility requirements in Alabama.