HUD has issued a reverse mortgage financial assessment for HECM reverse mortgage borrowers. HECM lenders are to evaluate the borrower’s willingness and capacity to timely meet their financial obligations and to comply with the mortgage requirements. Those mortgage requirements include paying property taxes, homeowner’s insurance and keeping up home maintenance.
Preliminary qualifying questions include:
Do you file an income tax return with the IRS?
Are you currently employed? What are your sources of income? What is your total income?
Do you have assets that could be used as monthly income such as savings, CDs, 401k, IRA, Annuity etc.
What are your monthly obligations? (Installment debt, Revolving/credit card debt)
Have you experienced any hardships that may have affected your credit?
Have you ever co-signed on a loan?
Have you filed for bankruptcy in the past 2 years?
Have you been or are you in foreclosure? If yes, was it an FHA loan?
Have you had any tax liens or judgments in the past 2 years?
Are you current on your taxes and homeowner’s insurance?
What are your monthly or annual property taxes and homeowner’s insurance?
Do you have PUD or HOA dues, what is the amount and is it current?
Do you have any other real estate such as an investment property or second home? Is there an FHA loan on the other property?
To Read the HECM Financial Assessment and Property Charge Guide, Click Here