Reverse Mortgage Qualification Criteria:

1. All Borrowers must have attained age 62. An older spouse may borrow separately based on their attained age if higher benefits are needed or if a spouse has not yet attained the age of eligibility. Doing this should be a considered decision.  In some cases it may not be a prudent decision.   

2. Credit history is not a factor in reverse mortgage underwriting.  Bankruptcies, foreclosures, poor credit history or no credit do not impact your eligibility for a Reverse Mortgage. An active Bankruptcy must be discharged before your Reverse Mortgage can be Funded.  If you have attained age 62, your equity is sufficient & your property is in lendable condition  you will be approved for a Reverse Mortgage.  There is no income criteria for a Reverse Mortgage. Millionaires and paupers are equally welcome.

3. The benefit you get is computed using the current value of your home and your actuarial life expectancy less any liens against the property existing at the time you apply.  You may take a lump sum disbursement at closing, a guaranteed monthly payment for life, a line of credit or any combination of the above. There is a great deal of flexibility in the benefit you choose. You can obtain a customized Benefit Analysis by e-mailing:

 A. Your age or Mo. & Yr. of Birth

  B. Approx. value of your home

  C. Your zip code

  D. Existing Mortgage Amount (if any)

E-mail to: ken@ampy.com or call:

             800-686-0238

4. Your benefit is guaranteed for life. You can not outlive a Reverse Mortgage.  You never lose control of your property. The property can be sold at anytime. Whatever balance is due on the Reverse Mortgage is repaid from the sale proceeds. You or your heirs get the remaining equity in the property.
 

5. You may live in your home for the rest of your life. No payments are ever due on a Reverse Mortgage. You are required to maintain the property, keep it insured, and pay the property taxes.  If you live well beyond your actuarial life expectancy and end up owing more than the value of the property H.U.D. accepts title to the property as satisfaction of your Reverse Mortgage. The Reverse Mortgage Contract is "Non-Recourse". Your estate remains intact for your heirs.  The H.U.D. Mortgage guarantee absorbs any deficiency.

6. Single Family Homes, Condominiums, Town Houses, 1 to four unit owner occupied properties and Manufactured Homes on H.U.D. compliant permanent foundations qualify for a Reverse Mortgage.  As of today Condominium Mobile Home Projects are not acceptable. H.U.D. is said to be considering a program for this type of development.  Stay tuned.

7. HUD/FHA offer 2 varieties of their Reverse Mortgage product. The "Monthly" and the "Annual". Monthly and Annual refer to the period of up or down interest rate adjustments. The "Monthly" floats 1.00% above the 1 year Treasury Index while the "Annual" has a 2.60% margin. The "Monthly" is by far the most popular.

8. Benefits are calculated using:

    A. The value of your property.

    B. The Seniors attained age.

    C. Statistical Life Expectancy.

    D. The current Rate of Interest.

The older the Senior is the higher the % of their equity they are allowed to access with a Reverse Mortgage.

If there are specific questions please e-mail them to: ken@ampy.com or call Toll Free: 800-686-0238 - ask for Ken Terrill.  Real people answer our phones unless you call after hours.  Evenings & weekends call my home: 800-811-2738 - ask for Ken.

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