If you’ve decided you’re ready to apply for a reverse mortgage, chances are you’ve already done a fair bit of research. (If not, no worries — you can always browse through the informational articles on my blog to get caught up.) So what’s next? Here’s a quick overview of the process and what you can expect moving forward.

Age Requirements

You likely know that to qualify for a reverse mortgage, the borrower must be at least 62 years old. In the case of married couples who both wish to be listed on the loan, both individuals must meet this age requirement.

It’s also important to note that the loan amount you qualify for is based on the age of the youngest borrower — generally, the older the borrower, the greater the available funds.

Does Your Home Qualify?

Not all properties are eligible for a reverse mortgage, but many are. The home must meet HUD and FHA guidelines, which typically include:

• Single-family homes

• 2–4 unit properties, with at least one unit occupied by the borrower

• Some condominiums

• Certain manufactured homes

If you’re buying a new home using a Reverse Mortgage for Purchase, any new construction must have a Certificate of Occupancy before the loan process can begin.

Once your home qualifies, a professional appraisal will be conducted to determine its current market value.

Financial Assessment

To promote long-term success and borrower stability, HUD now requires a financial assessment as part of the reverse mortgage application process.

This evaluation ensures that you have the financial means to keep up with necessary expenses such as:

• Property taxes

• Homeowners insurance

• Home maintenance and utility costs

While you won’t have any monthly mortgage payments with a reverse mortgage, you are still responsible for these ongoing obligations.

Choose a Trusted Advisor

At this stage, it’s essential to work with a reputable reverse mortgage specialist and lender. You should feel comfortable asking questions and confident that your concerns are being heard and addressed.

And remember — be cautious of potential scams. Unfortunately, seniors can sometimes be targeted by fraudsters posing as legitimate lenders. Trust and transparency are key as you move through the process.

Jan and Kelsey are Reverse Mortgage Specialists serving the Erie, Dacono, Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado, as well as the Cheyenne and Laramie communities of Wyoming.  Contact Jan and Kelsey to learn if a reverse mortgage is right for you.