Reverse mortgages are available to homeowners age 62 and older. There is no minimum income or credit score requirement.
A provision in the economic stimulus package raised the maximum home value that can be counted for reverse mortgages from $417,000 to $625,500. However, the full value of the home is not available to the reverse mortgagor and a formula must be used to determine the amount that is available.
In addition to the regular closing costs, an origination fee of 2% on the first $200,000 of the loan balance will be charged and a 1% fee on any amount above $200,000 will be added. Also, a mortgage insurance premium of about 2% and a monthly service charge fee will be included.
Contact an estate planning law firm for further information.