Generally, there is no qualifying for a reverse mortgage like there is on a forward mortgage. It does not matter what the credit is like or the amount of assets. However, when using a reverse mortgage to buy a home there can be a couple of conditions that are needed to be addressed should you want to retain an existing home instead of selling it.
Assets needed to close the loan will need to be verified. These funds still need to be sourced and a clear picture of where the funds came from will need to be established through a paper trail of bank or investment statements.
If your existing home is going to be rented out now and retained, the underwriter will also need to see that there is enough income to make that mortgage payment if there is one. This is a key underwriting condition that some loan officers overlook and it could present problems if not addressed.
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