Qualifying for a reverse mortgage looks different from qualifying for a regular mortgage. Here are the basics for an FHA-insured HECM in Kansas and Missouri.
Basic requirements
- The youngest borrower on title is 62 or older
- The home is your primary residence and you live there most of the year
- You have meaningful equity, either owning the home outright or owing a balance the reverse mortgage can pay off
- You are not behind on federal debt, such as federal student loans or taxes
- You complete counseling with a HUD-approved counselor
- You can keep paying property taxes, homeowners insurance and upkeep
Homes that usually qualify
- Single-family homes
- 2 to 4 unit homes where you live in one unit
- FHA-approved condominiums
- Some manufactured homes built after June 1976 that meet FHA standards
How much you could get
The amount depends mainly on the age of the youngest borrower, the home’s appraised value and current interest rates. Older borrowers and higher-value homes generally qualify for more. Any existing mortgage is paid off from the proceeds first.
The quickest way to get a real number is a short call. Steve can run your scenario and tell you what to expect.
What if you are married and your spouse is under 62?
A younger spouse can still be part of the picture as an eligible non-borrowing spouse, with certain protections to stay in the home. The rules are specific, so talk it through before applying.
Talk to a real person in Kansas City
Steve Clune is a licensed loan officer for Kansas and Missouri. Call or text with your questions. If you miss him, send a text and he’ll get back to you.