reverse mortgage for under 62?

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i am a disabled man age 59 and my spouse is 50. because of huge medical costs my credit is in the toilet. i have a limited income and i am on social security disability. i own my home in oregon outright. the value is approx $ 300,000. i desperately need some repairs done on the home in order to put it on the market. cant qualify for conventional loan but need to borrow the funds. where can i and is it possible that there is a reverse mortgage available for us. only need to borrow about $ 20,000 but cant repay until the home sells and closes. any ideas?

6 Comments
  1. Reply
    Fred F
    April 29, 2011 at 11:57 pm

    The fees will be steep—check everything out first.

    Try selling the house as-is.

  2. Reply
    the tax lady
    April 30, 2011 at 12:32 am

    You need to sell and move. This is the only way you will free up funds.

    Unless you can qualify for a HELOC or have credit left on credit cards, you won’t be able to do the repairs first. The price will take a hit of approximately the same amount.

    If you have owned and lived in your house for at least 2 of the last 5 years, you can exclude $ 500K of gain so this would not be a taxable event.

  3. Reply
    Edgar T
    April 30, 2011 at 1:24 am

    I actually don’t think you can you can have a reverse mortgage under 62, because law is a law. But maybe you actually go to some financial experts and look for other solutions.

  4. Reply
    Tom
    April 30, 2011 at 2:17 am

    You won’t qualify for a reverse mortgage due to your age. However you could probably take out a hard equity loan. This is a loan through a private lender and they usually don’t require a credit check since the loan is over-collateralized by the value of the home.

    The costs are steep and the interest rates are usually very high but they could probably easily lend you the funds you need to bridge you to closing. Be VERY careful with these lenders however. Seek out a reputable mortgage broker in your area and make sure its someone you can trust. You can easily be taken advantage of with those loans, so you need to find someone who can get you a decent deal. Be prepared to be shocked by the costs. I’m not kidding when I say that these loans can be expensive. Oh, and if you find a deal that sounds too good to be true, it probably is. Make sure you read the fine print.

    Good luck.

  5. Reply
    Jennifer H
    April 30, 2011 at 2:44 am

    Definitely a tough situation. When it comes to a reverse mortgage it is base upon the age of the youngest resident of the house. That person must be age 62 or older.

  6. Reply
    betotron
    April 30, 2011 at 3:16 am

    yep —go for it

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