REVERSE MORTGAGE QUALIFYING-HECM LOAN
Did you know that FHA is now requiring borrower’s to qualify for HECM reverse mortgages? Take a look for yourself, they’re really digging into your personal finances with the reverse mortgage product. Here are a few things to take away from this new income worksheet.
1. They’re not only looking at your ability to pay your monthly expenses, but they’re looking at your willingness to pay.
If you have enough income to pay your monthly bills and have enough money left over to satisfy the disposable income requirement per the guidelines the lender may still require you to have a lifetime set aside. If you’ve recently had a bankruptcy for instance, one that is less than two years old, FHA may require you to have a lifetime set aside. If we can show a one time event caused you to go into bankruptcy we may be able to get a waiver of the set aside. I’ve included the residual income table below by region and you can also download it here.
RESIDUAL INCOME FOR REVERSE MORTGAGE-HECM LOANS
Family Size Northeast Midwest South West
1 $ 540 $ 529 $ 529 $ 589
2 $ 906 $ 886 $ 886 $ 998
3 $ 946 $ 927 $ 927 $1,031
4 or more $1,066 $1,041 $1,041 $1,160
2. You may need to provide tax returns to get a Reverse Mortgage
Yes, you will need to provide some form of proof of income. Depending on how you earn income FHA may require you to provide the last two years of your tax returns. Most of our borrowers don’t earn enough income to warrant filing tax returns, but you will still need to provide your Social Security Awards letter, bank statements reflecting receipt of social security, and potentially any pension filings. If you are working a job you can expect to provide paystubs, W2’s, and possibly 1040s.
This is an important point, and why its important for you to work with us at North Bay Capital. Jesse Gonzalez, the President and Founder, has been originating forward and reverse mortgage for over 10 years. He has the experience needed to navigate the waters of income qualifying that other reverse mortgage originators simply do not have. Call us today 707-595-5393 to determine if you qualify for a reverse mortgage.
These materials are not from HUD or FHA and were not approved by HUD or a government agency