Find the Best Reverse Mortgage Lenders in Cleveland, OH

How to qualify for a reverse mortgage lender in Cleveland

Many Clevelanders seek reverse mortgages because they have fixed incomes and want to enhance the quality of their retirement years. As with most of the U.S., the Cleveland area is seeing steady increases in the number of seniors in the community as baby boomers age.

Developers are offering seniors more housing options including luxury apartments, assisted and independent living complexes, and townhouse and villa-style housing. Some of the most active areas for such development include Medina, East Cleveland, Lakewood and Bedford. These areas offer affordable land, proximity to major medical institutions and some tax abatement programs.

Among reverse mortgage products, over 90 percent of them are managed by the Department of Housing and Urban Development. These are insured by the federal government and have several requirements for borrowers:

• The homeowner must be at least 62 years old.
• The home mortgage must be nearly paid off, and there must be equity in the home.
• The homeowner must reside in the home.
• The homeowner must complete a consumer counseling class.
The homeowner must not owe any debt to the federal government, such as delinquent taxes.
• Homeowners choosing a reverse mortgage are still responsible for maintaining home insurance, paying property taxes and keeping up the property.

The majority of single-family homes are eligible for these loans, as are many condominiums and other types of housing, based on Federal Housing Administration guidelines.

Ohio law requires companies participating in reverse mortgage brokering or lending to obtain their Certificate of Registration according to the Ohio Residential Mortgage Lending Act.

The FHA requires the borrower to pay for mortgage insurance to protect the lender in case of default. This insurance premium may be bundled into the amount of the loan. Reverse mortgages end when the borrower either moves away from the home or dies. The borrower or their heirs are entitled to any remaining equity balance after the home is sold.

The number of reverse mortgages is expected to continue to rise with many Americans having inadequate savings to rely on. Consider the companies below if you decide a reverse mortgage in Cleveland is right for you.