No. The most popular type of reverse mortgage loan is called a Home Equity Conversion Mortgage (HECM), and it is only available to homeowners who are 62 years old or older.
Alternatives to a reverse mortgage
Make sure you comprehend a reverse mortgage before taking one out. You might want to consider additional housing and borrowing options, such as:
When you are older and more likely to have lower income and higher medical expenses if you take out a reverse mortgage loan when you are too young, you risk running out of money.
Other home equity options
To borrow money against your equity, a home equity loan or line of credit may be more affordable. However, these loans have their own dangers and are typically repaid monthly. Your income and credit are also factors in these loans.
Refinancing your current mortgage with a new traditional mortgage may result in lower monthly mortgage payments, depending on interest rates. Pay close attention to how long it will take you to pay off your new mortgage because it may have an impact on your retirement strategy. For instance, taking on a new 30-year mortgage as you get closer to retirement can be difficult later. Choose a mortgage with a shorter term, like a 10- or 15-year loan.
Consider selling your home. Your best bet to lower your overall costs might be to move into a more reasonably priced home.
There are state and local programs that may help with utilities and fuel payments as well as home repairs. Many localities also have programs to help with property taxes: check with your county or town tax office. Information about these and other benefit programs is available through benefitscheckup.org .
Note that only Home Equity Conversion Mortgages (HECMs), the most prevalent form of reverse mortgage loans, are covered by this information.
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FAQ
Why would you not qualify for a reverse mortgage?
Either you must be a home owner in full or have a low mortgage balance. If you own your house outright, you are free of your mortgage obligation. When the reverse mortgage closes, you must be able to pay off any outstanding mortgages.
What credit score is needed for reverse mortgage?
There is no minimum credit score requirement for a reverse mortgage because lenders are primarily interested in whether you can afford the ongoing costs of maintaining the home. But lenders will check to see if you have any unpaid federal debts.
Which of the property types does not qualify for a reverse mortgage?
Vacation homes and second homes are not eligible for the reverse mortgage loan because your property must be considered your primary residence. Homes on land that generates income, such as a farm, are also ineligible. To be eligible, your home’s primary lien must be a reverse mortgage loan.
Are there income requirements for a reverse mortgage?
No. There are no income requirements with a reverse mortgage, unlike with a traditional mortgage or home equity loan, because you are not required to make monthly repayments.