Reverse Mortgage Loan with Bad Credit

Most, but not all, reverse mortgages today are federally insured through the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) Program. This advertisement talks about HECM loans only.

Unanticipated situations like a serious illness, job loss, or an accident can cause bad credit. An excellent credit score is not required for a reverse mortgage loan. However, some income and credit qualifications apply to ensure you have the ability to pay taxes and insurance, and to maintain the home; some property qualifications also apply.

With the new* changes to the FHA insured Home Equity Conversion Mortgage (HECM) more seniors 62 years of age or older are using this mortgage to increase their cash flow in retirement and better their lives in retirement. If you are not aware of the major changes check out the HUD site at

*New represents when the Life Expectancy Set Aside (LESA) was put in place in 2015

Educate yourself on the information you need to make an informed decision. Use the link above to get the facts. You can work with a Reverse Mortgage Planner to analyze your unique situation and see if a HECM is right for you. It’s simple, just use the HECM link to send your HECM assessment and schedule a call.

Are there any costs with a reverse mortgage loan?

Processing fees, commonly called closing costs are necessary to process the loan. Closing costs vary from state to state. It may be possible for lenders to “roll the closing costs” into the mortgage meaning the closing costs may be financed into the loan amount.