What are the basic requirements to qualify for a HECM?

The requirements are set by HUD, and include:
• All borrowers must be age 62 or older (this applies to all co-owners listed on the home’s title).
• The home must be your principal residence. And it must meet standards set by HUD on property type and condition. You may be able to use your reverse mortgage to pay for any required repairs in order to meet these standards.
• Eligible property types include single-family homes, 2- to 4-unit properties, manufactured homes meeting certain criteria, condominiums that are approved by the Federal Housing Administration (FHA), and townhouses. Co-ops do not qualify.
• You must have sufficient monthly income left over after living expenses (appropriate for your family size) to meet the ongoing property expenses such as property taxes, insurance, and maintenance. It’s a lower standard than a typical traditional forward mortgage or home equity loan.
• You must pass a Financial Assessment to evaluate your capacity and willingness to meet your financial obligations. You do not need a credit score. The assessment is primarily to ensure the HECM is a suitable financial product for your circumstances.
• You must be counseled by an approved HUD counselor.

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