Does the house have to be paid off in order to be eligible for a reverse mortgage?

October 27, 2015 2:26 pm Published by Comments Off on Does the house have to be paid off in order to be eligible for a reverse mortgage?

No. The house does not have to be paid off to qualify. However, the borrower must use the loan proceeds received from the reverse mortgage to pay off the existing mortgage or liens (if there is a mortgage balance owing). The borrower will continue to hold title to the home.