How Does Credit Score Affect Reverse Mortgage Rates?
In this episode, Jeffrey Levine of Buckingham discusses the rates on reverse mortgages and how they are affected by credit score.
Key Takeaways
- FHA reverse mortgages have no credit score requirement, so a low credit score won't disqualify you or affect your interest rate—lenders focus instead on your ability to pay property taxes and insurance
- Private reverse mortgages may scrutinize your credit and payment history more closely, potentially requiring concessions or a more difficult underwriting process if there are concerns about maintaining tax payments
- FHA reverse mortgages have a federal dollar limit, making them unsuitable for high-value homes; private reverse mortgages allow you to access more equity but without federal backing protections
- Lenders prioritize assurance that property taxes will be paid to avoid liens on the property, so proof of on-time tax and insurance payments can strengthen your reverse mortgage application regardless of credit score
How Does Credit Score Affect Reverse Mortgage Rates? In this episode of Ask The Hammer, Jeffrey Levine of Buckingham discusses the rates on reverse mortgages and how they are affected by credit score. He explains that while credit score is not a factor for federally backed reverse mortgages, it may be considered for private reverse mortgages. He also discusses the differences between FHA and private reverse mortgages, such as the dollar limits and the regulatory requirements. Watch more episodes of Ask The Hammer at this link: https://www.finstream.tv/videos/ask-the-hammer/
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