BREAKING: HUD Just Issued Deferral for Non-Borrowing Spouses

May 6, 2021     no comments

BREAKING NEWS: With Mortgagee Letter 2021-11 (ML 2021-11), HUD just issued some clarifications to reverse mortgage borrowers who obtained reverse mortgages when one spouse was not on the loan and was considered a non-borrowing spouse. Prior to 2014 when HUD changed the rules, these spouses had no protections under the loan and after the 2014 changes, the “eligible non-borrowing spouse” designation came about with certain restrictions.  The announcement helps borrowers who obtained their loans both before and after the 2014 rule changes. Before 2014, non-borrowing spouses had... Read Full Article

What is a Reverse Mortgage? The A-Z Guide by ARLO™

May 4, 2021     70 comments

Reading time: 25 min What is A Reverse Mortgage? A reverse mortgage is a loan.  It is not a government grant.  You are not selling your home to the bank and you are still on title to the property.  Just like any other loan, you are still responsible for the payment of your taxes and insurance but unlike other loans, with a reverse mortgage, borrowers are not required to make regular payments of principal and interest or interest only for as long as you live in the home as... Read Full Article

Reverse Mortgage After Death: What Heirs & Family Must Know.

May 3, 2021     190 comments

It seems that one of the most popular questions we get is: What happens with my reverse mortgage and my home after death? The reverse mortgage is intended to be the last loan that borrowers will ever need, so this is a question many homeowners and their heirs have on their minds as many of them intend to keep the loan and the home for life. If they do get a reverse mortgage and it does enable them to live in their homes without paying a mortgage... Read Full Article

How a Reverse Mortgage Really Works – Know the Facts! | ARLO™

April 20, 2021     44 comments

Reading time: 11 min How reverse mortgages work: Loan for homeowners age 62+ No monthly mortgage payments are required. Funds are tax-free and may be used for virtually anything. Loan is repaid when you pass away or sell your home. Any remaining equity belongs to your heirs. A reverse mortgage works by allowing homeowners age 62 and older to borrow from their home’s equity without having to make monthly mortgage payments. The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM), a program... Read Full Article

Which is Best? Fixed vs. Adjustable Rate Reverse Mortgages

April 12, 2021     7 comments

If you have made the decision to stay in your home, but you are not sure if your savings will last, a reverse mortgage may be the solution to help you achieve that goal. Different reverse mortgage types serve different purposes and as with any mortgage you must consider which program and rate option are best suited for you. Just like any other mortgage, reverse mortgages offer two types of interest rates: fixed rates and adjustable rates. Insured by the Federal Housing Administration (FHA), the most common reverse mortgages on the market today are Home... Read Full Article

2021 Reverse Mortgage Requirements for Manufactured Homes

March 27, 2021     46 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 aged 62 or older, you must legally own the home, it must be your primary residence, and you must be eligible for participation in Federal Housing Administration programs. And if you have a manufactured home, yes, you can get a reverse mortgage—as long as it was built after June 15th,... Read Full Article

How Bankruptcy Can Affect Reverse Mortgage Eligibility

March 27, 2021     42 comments

We have recently had several borrowers who had previously obtained a reverse mortgage call and ask us what the effect would be on those reverse mortgages if they had to now begin a bankruptcy proceeding. While we are not attorneys and would always advise you to seek competent legal advice from an attorney in your state, we did want to contact an expert in the field of loan servicing for reverse mortgages and get some additional information that we could pass on. We contacted Ryan LaRose, Chief... Read Full Article

How a Reverse Mortgage is Smarter than a HELOC.

March 27, 2021     7 comments

A Look into the "Reverse Mortgage" VS "HELOC" (Home Equity Line of Credit)  You may have heard of reverse mortgages, and the retirement option they can offer to individuals or couples who are “house rich, cash poor.” For those looking to tap into their home equity in retirement, a reverse mortgage can be a useful tool to allow this. A home equity line of credit (HELOC) may be another option. What you may not know about Reverse Mortgages There’s a lot more to be gained by getting a... Read Full Article

When is the Best Time to Take a Reverse Mortgage?

March 14, 2021     4 comments

Ultimately the right time to get a reverse mortgage depends on what works out best for the borrower. The timing must be right for you and your needs. But we hear borrowers who are convinced that they want the loan but are thinking that they should wait a year or two until one of the borrowers is older so they can get more money from the loan. We believe this is the wrong strategy and we will explain why in this article. This can lead to borrowers paying higher... Read Full Article

2021 Jumbo Reverse Mortgages: Lenders Rates & Limits.

March 12, 2021     20 comments

Expansion of Jumbo & Proprietary Reverse Mortgages  The Mortgage Insurance Fund, which affects all borrowers who rely on federally-insured reverse mortgage loans, has been at risk.  HUD responded with a series of changes that limit exposure to future losses.  One of the silver linings from the changes HUD made is the re-emergence of Jumbo Reverse Mortgage products. For most borrowers, in the past, jumbo programs simply did not make sense. Most often borrowers with homes worth less than $822,375 would typically receive as much or more money on HUD... Read Full Article