Options For People Who
Don't Qualify For A Reverse Mortgage
Based on the application you sent in, unfortunately it appears you do not qualify for a reverse mortgage - because you don't qualify for a large enough amount of money to pay off your existing mortgage/debts.
There are 4 options available to you that we'd like to outline in detail - as well as some other resources to help with each option:
Option 1 - Do Nothing
We aren't going to spend a huge amount of time discussing this - since the fact you applied for a reverse mortgage means you are probably looking for some kind of improvement on your current situation.
So let's move on to the other options...
Option 2 - Refinance Your Existing Mortgage/Debts
You can use any existing equity in your home to refinance a mortgage and pay off debts. This can include using a Home Equity Line of Credit (HELOC).
The problem is that for many people, this simply isn't an option. Qualifying for a mortgage today is harder than it's ever been in the last 20 years - thanks to new rules introduced by the Government.
You're going to probably need some reasonable income, a good credit score and maybe even some assets. Otherwise this isn't really an option for you.
If you do think you might qualify for a refinance, you can click the button below and fill out a short application - we'll then put you in touch with a mortgage expert who can assess your situation.
Otherwise - if you don't believe you qualify for a mortgage - then we suggest you consider either option 3 and especially option 4.
Option 3 - Sell Your Home And Rent/Lease Somewhere
So our preferred option, is option 4 below - but there is also the choice of selling your home and renting/leasing somewhere.
Of course the problem with selling your home is that you still need somewhere to live. This is why we prefer option 4.
You will also need to run the numbers to make sure this works - we can put you in touch with a specialist who can do this.
We strongly suggest working with a Real Estate who specialises in this kind of plan. If you click the button below, we can put you in touch with one, since we work with many professionals who work to help retirees figure out a plan with using their home equity to retire in this way.
Option 4 - Sell Your Home, 'Right-Size' And Take Out A Reverse Mortgage On The New Home
There are essentially 3 parts to this plan but when executed it can set you up for an amazing retirement. What you are going to do is:
1. Sell your home
2. Buy a smaller home - in your neighbourhood (so you can still stay where you have enjoyed living your entire life.
3. Use a reverse mortgage for the home purchase - so you can buy a home and not have to make any more mortgage payments.
This is often called 'right-sizing' but too many people get caught up on the name - the name doesn't really matter: all that matters is that this strategy can give you a major cash inflow (from selling your home and buying a smaller one) - and really set you up for an amazing retirement, since you'll never have to make mortgage payments again.
Yes, we understand that you are probably very reluctant to sell your home. Most of our clients are. But the majority who have followed this path tell us that this was a life changer for them - in the most positive way.
Here are some example numbers of how this works:
Again, we recommend talking to a specialist - who can help you run the numbers and decide if this is the right option for you. If you click the button below and fill out a short application, we'll put you in touch with one.