Bad Credit and Financial Assessments

Reverse mortgages do not require a perfect credit score. Instead, lenders perform a Financial Assessment to ensure you have the financial capacity and willingness to pay your ongoing property taxes and homeowners insurance.

Life Expectancy Set-Aside (LESA)

If your credit history or income doesn't fully meet the assessment guidelines, the lender may require a LESA. A portion of your loan proceeds will be set aside to automatically pay your property taxes and insurance on your behalf.

A reverse mortgage is a loan secured by the home. Borrowers remain responsible for taxes, insurance, property maintenance, and complying with loan terms.