For the first time, borrowers will have to prove they can handle the ongoing property costs to qualify for a reverse mortgage.
Homeowners applying for a reverse mortgage will soon have to clear a new hurdle. In the spring, all borrowers will have to prove that they can handle the ongoing costs of the loan. Homeowners who don’t pass the financial assessment could be denied. “It’s the biggest change we’ve ever faced in the industry,” says Paul Fiore, executive vice-president of American Advisors Group, a reverse mortgage lender.
Read more from Rachel L. Sheedy at Kiplinger’s Retirement Report HERE