What To Do If There is Not Enough Equity For a Reverse Mortgage?
With the refinance boom that lasted from the early 2000s to about 2008, many homeowners, especially people who had never refinanced before jumped at the opportunity to do a cash-out and take out a huge chunk of equity. Many people refinanced many times. They were able to do so because of how quickly the home values kept rising. However, as a result of the housing crash, many of those same homeowners now owe more than their home is worth. Senior citizens were no exception to the rule. Many seniors also refinanced and took cash out.
The problem now is many of those same senior citizens are not able to qualify for a reverse mortgage because they do not have enough equity in their home. To qualify for a reverse mortgage, a homeowner must have a decent amount of equity in the home. The older the borrower, the less the equity required. For example, if you are 62, most lenders will likely require close to owing no more than 60% of your mortgage. If you are 75, you may be able to do a reverse mortgage even if you owe 70% of your mortgage.
Fill out our form today and let our lenders help determine if you may qualify or not.