Applying for Your Reverse Mortgage: What You’ll Need

Please gather the documents (originals or copies) you will need to provide to apply for a Reverse Mortgage. Your prompt return of the indicated items will help us expedite you transaction. Your file will be reviewed by our processor at which time additional information may be requested.

Required items on all loans

• Counseling Certificate signed by both Counselor and borrower
• Tax Bill for the most recent year- on all properties owned in the last 24 months
• Homeowners Insurance contact information- on all properties owned in the last 24 months
• HOA/PUD/Condo contact information – on all properties owned in the last 24 months
• State Issued Driver’s License or ID card not expired
• Social Security Card or 1099/W2 with complete Social Security number
• Current copy of your mortgage statement (and HELOC) if you have any mortgages  

Income Documentation

Social Security: 

• Most recent SS Benefits Letter (also known as Award's letter)
• prior year 1099 from SS 

Pension/Retirement Income:  Pension verification letter stating how long benefit will last and monthly benefit amount or value of settlement

Employed:

• most recent 30 days’ of pay stubs,
• 2 most recent years of W2s

Self-Employed:

• 2 most recent years personal and business tax returns all pages
• YTD P&L for Schedule C Income
• YTD P&L and Balance Sheet for Schedule E Income except rental income

Assets needed/Cash to close

• 2 Most recent months of bank statements in borrower’s name, with all pages (even if blank)
• Deposits over $500 will need to be sourced and provide a paper trail 

Letters of Explanations for Credit

• Letter of explanation for derogatory accounts on credit report- all lates in the last 24 months may subject file to LESA
• Letter of explanation for all credit inquiries in the last 90 days (if applicable)
• Letter of explanation for all additional addresses on credit report

Purchase Items needed (if applicable)

• Purchase contract with all pages and executed by all parties (if applicable)

The ONLY Interested party contributions allowed are as follows:

• Fees required to be paid by a seller under state or local law
• Fees customarily paid by a seller in the subject property locality; and
• The purchase of the Home Warranty policy by the seller
• There can be no seller or realtor concessions and no lender credits
• Canceled earnest money check (front and back) and bank statement to show it cleared
• Home Inspection: if listed on contract we must provide: all safety repairs must be fixed
• Amendatory Escape Clause and Real Estate Certification must be signed by all parties
• Letter of intent for current residence (selling it and using for down payment or keeping property

Miscellaneous Items needed (if applicable)

• Payment plans for judgments or tax liens if not on title
• Payment plan with 3 consecutive payments paid on time
• OR Paid at time of closing with OWN funds

Non-borrowing spouse

• State Issued Driver’s License or ID card not expired
• Social Security Card or 1099/W2 with complete Social Security number
• Credit authorization (if applicable)
• Need to complete counseling

Original Death Certificate: Has property been correctly transferred to correct owner (Probate)?

Complete copy of Trust papers.  All borrowers must be beneficiaries or an amendment will be needed

Divorce:  Copy of the Divorce decree

Engineer Certificate: will be necessary for a manufactured home

HUD 1: from last refinance or purchase if opened in the last 12 months

Closed end mortgage: no more than $500 cash at closing or need to wait 12 months to close

HELOC: payoff plus all other liens and closing costs can’t exceed 60% of the principal limit if opened in the last 12 months or the borrower will need to bring funds to close to reduce the UPB to 60% of the principal limit

Shared Well: Copy of the shared well agreement and recent water test

Community well/septic: contact information for the organization managing the well or septic

Private Roads and Shared Driveways

Permanent recorded easements,

Ownership interest, OR Be owned and maintained by a homeowners association (HOA).

Shared driveways do NOT require a joint maintenance agreement. The legal description of the property must include the recorded easement documenting the ingress and egress that protect access to the road.

Solar Panels:  Owned: will need a copy of the purchase agreement. Leased: will need a copy of the lease

Additional Properties

• Mortgage Statement
• Rental/Lease Agreements
• Most recent 2 years tax returns

Subject property listed for sale in last 12 months 

• Provide listing cancelation
• Letter stating why the home was listed and why it will not be in the future

HECM to HECM

• Current mortgage statement
• HUD or FHA case number from original closing

POA and Conservatorships

POA-Mentally Incompetent

A doctor’s letter certifying that the borrower is no longer capable of handling his or her own financial affairs.

This letter must include the date the borrower became incapable of handling financial affairs. The date on the doctor’s letter must be AFTER the date the borrower executed the POA. If the borrower signed the POA SHORTLY before being declared incompetent, the letter should verify that the borrower was capable of handling financial affairs on the POA date. The definition of “shortly” depends on the individual borrower’s situation, but generally means within less than 12 months of being declared incompetent.

Copy of the fully executed Durable POA all pages

The person acting as POA to attend the counseling session on behalf of the borrower

Copy of the POA's Photo ID Complete

Application to be signed like example below:

Example: If the borrower’s name is John A. Smith and the POA is Jane Doe, she signs the borrower signature line as “John A. Smith by Jane Doe as attorney in fact POA

POA-Mentally Competent but Physically Incapable of signing

A doctor’s letter that confirms the borrower’s physical incapacity, and certifies that he or she is mentally competent, but unable to sign.

A notarized copy of the fully-executed Durable POA.

The POA’s signature on ALL application and closing documents.

Example: If the borrower’s name is John A. Smith and the POA, guardian or conservator is Jane Doe, she signs the borrower signature line as “John A. Smith by Jane Doe as attorney in fact,” (or as “Guardian,” or “Conservator.”)

Guardianship or Conservatorship (if applicable)

A copy of the court order appointing the person as guardian or conservator.

Letter from title that the guardianship or conservatorship is acceptable to insure.

A court order stating that the court approves the loan transaction for a Home Equity Conversion Mortgage (HECM). The words “reverse mortgage” and “adjustable rate, negative amortized loan” must be included in the court order, as applicable. This court order:

Must be signed by a judge.

Should not include any interest amount. If an interest rate does appear, the court order must state that it is an “initial rate”, and note that it is an adjustable rate for a negative amortized loan, if applicable.

Should not indicate a loan amount. If a loan amount does appear, it must not be less than the recorded deed amount, which equals one and one half times the maximum claim amount.

Must authorize the trustee to act on behalf of the trust, if the property is in trust.

Court order stating the court approves the loan transaction for a Home Equity Conversion Mortgage (exact wording)

Letter from title that the guardianship or conservatorship is acceptable to insure

Guardian attends the counseling

Copy of the Guardian's Photo ID

Application to be signed like example below:

Example: If the borrower’s name is John A. Smith and the guardian or conservator is Jane Doe, she signs the borrower signature line as “John A. Smith by Jane Doe as “Guardian,” or “Conservator.”

POA of Convenience

A notarized copy of the fully executed Durable POA.

Borrowers must be counseled

Borrower must sign: initial 1009, initial HUD/VA 92900-A and counseling certificate

Handwritten letter from borrower indicating the reason why the POA is being used

Application to be signed like example below:

Example: If the borrower’s name is John A. Smith and the POA is Jane Doe, she signs the borrower signature line as “John A. Smith by Jane Doe as attorney in fact POA