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2022 Reverse Mortgage Limits Raise to Record $970,800!

September 9, 2022 6 comments

BREAKING: 2023 Reverse Mortgage Limits Reach All-Time High $1,089,300! HUD just announced their high-cost limits for Alaska and Hawaii. Based on the fact that the Home Equity Conversion Mortgage (HECM) limits normally follow these States, we can safely guess that the HUD HECM limit for 2022 will also jump to $970,800 for all new applicants as of January 1,...
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Reverse Mortgage Manufactured Home Requirements (2026)

September 6, 2022 64 comments

If you're the owner of a manufactured home and you're wondering about your eligibility for a reverse mortgage, here's the short answer: you may be eligible. Now for the longer answer. As with any prospective borrower, you must be 62 or older, legally own the home, be your primary residence, and be eligible for participation in Federal Housing Administration programs....
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Understanding the Effects of Trusts and Reverse Mortgages

August 31, 2022 102 comments

I have the home in a family trust. I am unmarried but have lived with my “wife” for years. She inherits the home by last will. Do we qualify for a reverse mortgage? The short answer is yes. You can have your home in a family trust with a reverse mortgage. Firstly, as a lender, we only get so...
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Who’s Responsible for Property Taxes on a Reverse Mortgage

August 27, 2022 46 comments

Who pays property taxes and insurance on a reverse mortgage? Reverse mortgages offer financial relief for homeowners aged 62 and up, but they don’t erase all responsibilities. A common question is: Who pays property taxes and insurance? The short answer: You, the homeowner—unless a Life Expectancy Set-Aside (LESA) steps in. Here’s what you need to know to stay on track....
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Using a Reverse Mortgage to Combat Inflation

July 30, 2022 2 comments

Have you considered a reverse mortgage but worried about inflation and rising interest rates? I recently had a borrower tell me that he was considering one but felt that he may have missed his opportunity before rates started to increase due to recent Fed rate hikes and inflation. He stated that he probably would not benefit now, with all the...
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Which is Best? Fixed vs. Adjustable Rate Reverse Mortgages

July 26, 2022 19 comments

If you’re planning to stay in your home but worry about your savings lasting through retirement, a reverse mortgage could help you achieve financial peace of mind. Reverse mortgages allow you to access your home equity without making monthly payments, giving you flexibility and security in your retirement years. [arlo_toc] What Are the Types of Reverse Mortgages? The most common...
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Reverse Mortgage & Going to Nursing Home? Read First!

July 25, 2022 85 comments

My mother has a reverse mortgage and recently had to go into a nursing home as she is terminally ill. According to the agreement, we had to notify the "said reverse mortgage company" that she was no longer living in the property. We were told by phone (we failed to document who, what, and where) that we had six months...
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Reverse Mortgage Seasoning Requirements Explained

July 25, 2022 14 comments

HUD has a new requirement that for borrowers to use reverse mortgage proceeds to pay off an existing lien on which the borrower received $500 or more, the loan must have been in effect for at least 12 months. This includes any liens on which the borrower took out additional draws of $500 or more in the past 12 months,...
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Reverse Mortgage Foreclosure Has No Effect on Heirs

July 13, 2022 25 comments

My MIL and FIL recently entered a reverse mortgage. The house is in good shape and worth about $150,000. I expect they will take a large distribution upfront as well as withdraw monthly amounts until they hit the max dictated by the lender. The large distribution up front coupled with fees, closing costs, mortgage insurance, and interest build means that...
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How to Purchase a Home That Has a Reverse Mortgage

July 13, 2022 100 comments

We were looking to buy a home and signed a contract for sale for $730,000. The house appraised for just over that amount. Afterward, we learned that the seller owes more than that ($760,000) on a reverse mortgage. Does HUD/FHA need to approve the sales price before we can close? The seller can complete the transaction because the sales price...
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