To find out if you qualify for a reverse mortgage (Home Equity Conversion Mortgage - HECM or proprietary), your First Class Mortgage Specialist will ask you the following questions to confirm your eligibility requirements and suitability:
1. Age of Borrower(s)
- “How old are you (and your spouse, if applicable)?”
(At least one borrower must be 62 or older for a HECM.)
2. Property Ownership
- “Do you currently own your home outright, or do you still have a mortgage balance?”
(They must have sufficient equity—any existing mortgage must be paid off with reverse mortgage proceeds or other funds.)
3. Type of Property
- “What kind of property is it—single-family, 2–4 unit, condo, manufactured home?”
(Only FHA-approved property types qualify; investment properties don’t.)
4. Primary Residence
- “Is this the home where you live the majority of the year?”
(The home must be the primary residence.)
5. Home Condition
- “Has the home been maintained, or are there major repairs needed?”
(Home must meet FHA minimum property standards.)
6. Current Liens or Debts on the Home
- “Do you have any liens, judgments, or other loans secured against the property?”
(These must be cleared or paid at closing.)
7. Property Taxes & Insurance
- “Are your property taxes, homeowners insurance, and HOA dues paid on time?”
(Borrowers must demonstrate ability/willingness to stay current.)
8. Other Occupants
- “Does anyone else live in the home with you?”
(Non-borrowing spouses or dependents may impact eligibility and post-borrower protections.)
9. Income, Assets, and Credit
- “Can you tell me about your monthly income, assets, and credit history?”
(While no debt-to-income ratio is required, lenders perform a financial assessment to ensure ability to maintain taxes, insurance, and upkeep.)
10. Counseling
- “Are you willing to complete a HUD-approved reverse mortgage counseling session?”
(This is mandatory before application can move forward.)
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