What is the min % equity required for a reverse mortgage and does the mortgageholder need to still live in the home?

It goes by the age of the person, the older the higher the loan to value will be. Has to be living in the home.

Dad would have to be living in the home at the time of loan closing. The loan becomes due if he dies, or no longer "lives" in the home. New reverse loans require about 50% remaining equity.

For a reverse mortgage, you need to be at least 62 years of age, and must live in the home as you primary residence.. if you move out of the home for more than 12 months, then you would have to either sell the home, pay off your loan or turn the home over to HUD. Typically you need 40% equity, but costs and fees can add up to another 10% so 50% equity would be necessary.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Thank you for your two part question on occupancy and equity.Funding ongoing longterm care can pose a challenge for many families. The recommended course of action is to get professional advice. The family should sit down with a certified reverse mortgage professional and an elder law attorney who provides medicaid planning. Working together the attorney can set up a comprehensive succession plan for the family. A financial planner will most likely also be needed as each family has differing needs and goals. Calculations need to be run to insure the family is on the right track.To answer your questions specifically- At the present time (this will change very soon), the equity percentage is determined by the present rate of interest, the program selected, and the youngest borrower on the loan.The table can be downloaded from the department of housing at: http://portal.hud.gov/hudportal/documents/huddoc?id=hecm_plf_2013.xlsHowever, these percentages do not factor in among other things set asides, costs associated with HECM reverse mortgages, and the calculations that need to be run on some products since the implementation of the reverse mortgage stabilization act of 2013. Also, the home value as related to this program is caped at the present lending limit- 625,500. A qualified expert can assist you with all these calculations. With regards to the occupancy for the HECM reverse mortgage, the property must be occupied by at least one borrower going forward. This WILL be verified and once a year the servicer will send over an affidavit of occupancy for the borrower to sign and return. If the borrower is out of the home for more than 12 consecutive months, the loan is considered in default.That being said, the HECM reverse mortgage is not the only reverse mortgage and other options may be available. Again, consult a qualified expert to assist your family.