Reverse Mortgage qualifications are very different from those involved in applying for a conventional home mortgage. There are no income or credit requirements! All homeowners (those whose names appear on the property deed) must be at least 62 years of age. The amount of money that will be automatically available to you depends upon your property's current market value, the age of the younger homeowner and the current interest rate (for example, that of the 10-yr. treasury-bill). Any existing mortgage must be paid in full by funds generated by the reverse mortgage, or another creative refinancing strategy may be used. The maximum amount possibly generated also depends on your county (FHA has set county lending limits).
There is considerable misinformation circulating about these plans. Although application can be made by mail if the mandatory counseling (see below) has been done face-to-face, it is probably wise to complete your application in the presence of a qualified loan-originator who is employed by a FHA certified mortgage broker who has knowledge and experience with reverse mortgages, not with just conventional home loans.
