Q. My wife and I are interested in the reverse mortgage. My wife is 72 years old and her income from a small pension and social security is $ 1,000 a month. His credit is good enough for loan programs. I am 65 years old, I still work and I also collect Social Security. Our total monthly income is $ 4,500. My credit is not too good. We have lived in this house for 35 years and we owe $ 74,000 on it. The value is around $ 250,000. We want to stay in the house and make improvements using a reverse mortgage to access around $ 45,000. Is this an option with my average credit?
A. Before entering into a reverse mortgage Okay, it’s important that you and your wife understand exactly what you’re getting into.
As for the qualifications, that will depend.
Reverse Mortgage Lenders will collect the credit scores of both spouses, said Jody D’Agostini, certified financial planner at Equitable Advisors / The Falcon Financial Group in Morristown.
They’ll look at everyone’s median score, she said, and if your score is below 620, you might struggle to qualify.
D’Agostini said you may have to wait and try to repair your credit.
“Reverse mortgages require both parties to have good credit, but there should be no late payments for at least 24 months for expenses related to your home such as property taxes, home insurance and mortgages.” , she said. “You may be able to get the loan right now, but they might require you to put aside enough money to pay your property taxes and insurance.”
It is also possible to simply ask your wife to apply for the reverse mortgage. his credit, she said.
“It can only happen until you are 62 or older,” she said. “Since she is older, you may be able to borrow more.”
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Karin Price Mueller writes on Bamboo column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Sign up for NJMoneyHelp.com‘s weekly electronic newsletter.