There’s Still Time for a Reverse Mortgage

April 20, 2015 – After some delays, the financial assessment for reverse mortgages will finally begin on April 27th, 2015.

Under current rules, borrowers are not required to provide income history or credit score information. However, with the new rules being implemented on April 27, lenders will now be required to do a credit history and income analysis through documentation that the borrowers will provide.

The financial assessment is not meant to disqualify borrowers from a reverse mortgage, but to determine if they are able to meet their financial obligations, such as paying for the property taxes and home insurance.

What does it mean for borrowers?

The financial assessment will now require more paperwork than what was previously required for a reverse mortgage. Also, if the lender finds that the borrower is not able to keep up with their debt management and financial obligations, it may mean that they will be required to do a set-aside from their reverse mortgage proceeds. For borrowers who want to bypass this rule, now may be the best time to contact a Senior Advisor on how to begin the reverse mortgage process.

If you feel a reverse mortgage may benefit you, contact a Senior Advisor at 1-888-808-8486.