Very recently HUD released a statement authorizing individual lenders to establish underwriting guidelines regarding income and debt ratios as well as credit history requirements.  MetLife is the first to release theirs and all new applicants will have to comply starting November 14th.

The purpose of these new financial and credit guidelines are to reduce the amount of future tax foreclosures on reverse mortgage  borrowers that have not paid their property taxes.

Not unlike applying for a forward conventional mortgage loan, each borrower will have demonstrate they have the income, credit history and assets to maintain thier property taxes, homeowners insurance and upkeep on the property.

Currently thier is no standard and each lender can establish thier own guidelines. It could be possible that you may get turned down with one lender and approved by another

Eventually it is expected that HUD will release a standard set of of guidelines for the the financial assessment but until then it’s up to each lender to set their own.