Residence Eligibility
The subject property must be the borrower’s principal residence. A person can have only one principal residence at any one time. The property cannot be considered the principal residence if the borrower does not occupy the property or in the case of a purchase, have the intent to occupy, as a primary residence.

In the case of co-borrowers, at least one borrower must occupy and use the property as their primary residence after the closing of the reverse mortgage and until the loan is due and payable. If a borrower fails to maintain the subject property as their principal residence it is considered a maturity event under the terms of the security instrument and may result in a demand for repayment of the reverse mortgage loan.

All rules that apply to forward mortgages regarding eligibility are the same for reverse mortgages. If you have questions regarding reverse mortgages please send them to info@alliedhomenet.com.