When determining income for a homeowner to qualify for an owner occupied rehab program, how is a reverse mortgage handled? A reverse mortgage can be offered as an open line of credit, a lump sum, or a monthly installment. How would you count each under the Part 5 Definition?
Date Published: May 2015
According to 24 CFR 5.609(a)(4), annual income also means amounts derived (during the 12 month period) from assets to which any member of the family has access. 24 CFR 5.609(b)(3) states that income also includes interest, dividends, and other net income of any kind from real or personal property. In addition, paragraph H of 24 CFR 570.3, Income, states any sources of income received regularly are counted. So, based on these definitions of income, income from a reverse mortgage would be counted toward the household income.