There are no income or credit requirements to qualify for a reverse mortgage in Ohio. However, you must meet the following requirements.

• Be 62 years or older;
• Use the home as a primary residence;
• Maintain homeowners insurance;
• Stay current on property tax payments;
• Meet FHA property standards;
• No delinquent federal debt;
• Own the home or have a low mortgage balance.

Indiana residents must meet all federal requirements outlined by HUD to get a reverse mortgage.

An Indiana reverse mortgage carries similar costs as a traditional loan with a few exceptions.

• HECM Counseling Fee: You must pay for the HUD-mandated session, and the cost varies.
• Origination Fees: Reverse mortgage origination fees cannot exceed $6,000. This is the cost to originate the loan.
• Mortgage Insurance Premium: The FHA requires you to carry mortgage insurance. You make an initial payment upfront, and then pay annual fees that can be rolled into the life of your loan.
• Interest: Your interest can be variable or fixed based on your reverse mortgage terms. It is similar to a conventional loan. The interest rate will increase the loan balance.
• Closing Costs: Your closing costs may include taxes, appraisals, title searches, surveys, etc.

District Lending will break down all the fees associated with a reverse mortgage so there are no surprises.

Indiana reverse mortgages may affect your heirs, depending on the loan balance and the home’s value. Your heirs will need to settle the loan on your behalf.

All reverse mortgages must be paid within 30 days after the borrower’s death or the home’s sale. The payment period can be extended up to six months with support from an attorney or HUD-approved counselor.

The Consumer Financial Protection Bureau outlines that the loan’s entire balance or 95 percent of the home’s appraised value must be paid to settle the loan. You pay the lesser of the two.

Any remaining funds will be distributed to your heirs. This also applies if your heirs sell the home to cover the cost of the loan. If there are any remaining proceeds from the loan, it will be split amongst your heirs.

The Indiana reverse mortgage must be repaid if you sell the home or are no longer living. Additionally, it must be repaid if it is no longer your primary residence or you don’t meet the loan requirements. Failure to repay the loan can lead to foreclosure.

Reverse mortgages carry risks like any other loan. You could lose the home or be forced to repay the loan in total if you do not meet the loan requirements. The loan can be called if you do not maintain FHA minimum property requirements.

District Lending can help you mitigate these risks. We will discuss your options so you understand what you qualify for and if a reverse mortgage is right for you.