We hope this series so far has provided you with valuable information regarding what a reverse mortgage is, what it is not, who qualifies, and how it can be a key pillar in your strategic plan for long-term success in retirement.

Beyond how the reverse mortgage can be utilized to achieve retirement goals, which we discussed earlier, in this post we wanted to focus on who is a good candidate for a reverse mortgage, and who perhaps is not.

So aside from meeting the technical qualifications as we summarized in our last post, a good candidate for a reverse mortgage is someone who shares these characteristics generally:

- You plan to continue to stay in your home and utilize that home as your principal residence for the long-term;

- You have a well-thought out financial strategy for retirement, and understand how a reverse mortgage can be implemented in a disciplined way as one of the pillars of that strategy; and

- You have significant equity in the home, and it makes financial sense to either utilize the proceeds from a reverse mortgage or other funds to pay off any existing mortgage.

On the other hand, the following considerations may describe someone who is not necessarily a good candidate for a reverse mortgage on their existing home:

- They do not plan to stay in their home for the long-term;

- They have not formulated a well-thought out financial strategy for retirement which incorporates a reverse mortgage; or

- They are prone to over-spending, or lack the resources to provide for their basic living needs and at the same time properly maintain the property and pay for property-related expenses over the long-term.

We would note as well that while a person may not be a good candidate for a reverse mortgage for their existing home if they plan to move for any number of reasons, including being closer to family, downsizing or finding a home that would allow them to more comfortably age in place, a HECM for purchase program is something to explore for a new purchase, providing the benefits of a reverse mortgage in the initial purchase of that new home.

As with any significant financial decision, the decision to move forward with a reverse mortgage should always be made with a clear, objective understanding of the reverse mortgage program and how it fits into your particular circumstances and meets your particular objectives. We are here to answer any questions you have, please reach out to us at any time.

In our next post, we will shift gears to provide an overview of the HECM program’s line of credit option, how it works, and how it may be integrated with your long-term retirement plan with an eye toward achieving your financial goals in retirement and leaving a legacy to your loved ones or causes that you care deeply about.