Can A Reverse Mortgage Loan Be Denied?
Thirty days after March 2, 2015 begins a new era in reverse mortgage qualification: Future borrowers are now subject to a credit and income approval like no other in mortgage history. Regardless of the credit score being 800, they can still be denied or have money withheld in a “Lifetime Escrow Set Aside” or LESA.
Can you get turned down for a reverse mortgage?
Basically, you'll need to prove that you have the “willingness” and “capacity” to continue paying your home's property taxes and insurance premiums. If the assessment convinces the reverse mortgage lender that you won't have the cash to make those home-related payments, you may be rejected.
It Just Got Tougher To Get A Reverse Mortgage - Forbes
What are the income requirements for a reverse mortgage?
No. A reverse mortgage does not require you to make monthly repayments so there are no income requirements such as with a traditional Mortgage or Home Equity Loan.
Reverse Mortgage Common Questions | WSFS Bank
What disqualifies you from getting a reverse mortgage?
A reverse mortgage may not be a good idea if: You currently have no mortgage, or a very low mortgage balance. You're underfunded for retirement. You don't have enough income for a regular mortgage or home equity loan. Your retirement income is very low.
What Is a Reverse Mortgage? | LendingTree