How Reverse Mortgage Financial Assessment Works

September 15, 2021     6 comments

Lenders must conduct a mandatory financial assessment of all borrowers as part of the loan application process. Historically, borrowers qualified for a reverse mortgage based on their: Age: a minimum of 62 Home equity: a level deemed substantial enough by the lender based on guidelines provided by the Department of Housing and Urban Development (“HUD”) Those factors along with interest rates were used to determine a loan amount for each borrower. The new financial assessment will take a look at additional criteria to determine whether a... Read Full Article

How a Reverse Mortgage HECM Purchase Works | ARLO™

September 14, 2021     62 comments

Reading time: 8.5 min What is a reverse mortgage purchase? Reverse mortgage loans are often used by people who want to remain in their existing homes. But there is another type of reverse mortgage that comes with all the same benefits, except it allows the borrower to buy a new home during the transaction. Through a Reverse mortgage for Purchase, or through the Home Equity Conversion Mortgage (HECM) for Purchase program, borrowers take out a reverse mortgage and purchase a new home all within a single transaction.  For those... Read Full Article

Appraisers Use the Sales Comparison Approach, Not Zillow.

September 14, 2021     no comments

Here is where Appraisals are not updated and correct? Zillow and others use sales per sq ft for cookie-cutter homes. They omit custom built homes in comparable homes because of lack of construction knowledge and insurance coverage? Costs of replacement coverage and appraisals would place a 5000 sq ft total home cost at $800,000-min w/o lot? Go Figure how you could be insulted at $600k on a no-nothing Appraisal? You just hit the nail squarely on the head but from an angle you didn't mean to go.  Appraisers... Read Full Article

What Happens to my Reverse Mortgage if Home Burns Down?

September 14, 2021     10 comments

I live in California, have a reverse mortgage and would like to know what happens if my home were to burn down in a fire? Do my monthly payments or line of credit continue if I must rebuild? If my insurance will not cover my loss does the loan become due? Insurance coverage works the same on a reverse mortgage as it does on a forward loan. All hazard claims are paid jointly the owner and anyone listed as “additional insured” (the lender) until the repairs are completed... Read Full Article

Resource for Conservators Seeking Reverse Mortgages

September 14, 2021     6 comments

The process of taking out a reverse mortgage on a property that is in conservatorship takes a few steps, but it can be done. Conservatorships are established when a court deems a person incapable of making certain decisions, and can encompass two categories: for a person, or for a person’s estate. Some conservatorships cover both aspects. They are generally put into effect when someone petitions the court to be appointed a conservator of an individual (usually a relative), and/or that individual’s finances and estate, whom they deem to be incapable... Read Full Article

Can I Protect My Girlfriend Not On My Reverse Mortgage?

September 13, 2021     4 comments

Hello Arlo, I obtained a reverse mortgage on home I purchased in 2011. Paid $170,000 for house in down market now appraised at well over $300,000. I moved my girlfriend in at the time of purchase - still with me ;) Question - how can I protect her from getting thrown out of "our" home if I go daisies up first? Thanx Arlo ~ Woof!! Hello Eddie, I see you speak my native tongue, but I won’t answer to be sure everyone can understand as well!  ;>)... Read Full Article

Lowest Cost Reverse Mortgage Surprisingly Affordable!

September 13, 2021     4 comments

Are you searching for the lowest cost reverse mortgage? It was just a few short years ago that people were reading about how expensive reverse mortgages were but that does not have to be the case currently. Don't get me wrong, HUD still charges an Initial Mortgage Insurance Premium based on the value of the home that can run as high as 2% for this one cost alone for the higher draws exceeding 60% of the available Principal Limit. And depending on the part of country in which you live,... Read Full Article

What Happens When Your Reverse Mortgage Money Runs Out?

September 13, 2021     9 comments

My parents have a reverse mortgage with a line of credit that has run out of money. It was very helpful to them for many years. One parent is in a long-term care facility and on Medicaid. My other parent is living in the home and my understand can live there for as long as alive and able to live there. When both parents are gone, I understand that the outstanding loan (including interest etc would be due and payable (first position) and that Medicaid would come in and claim... Read Full Article

Reverse Mortgage Appraisal Disputes and Rebuttals

September 13, 2021     15 comments

Here is what has happened to me regarding the appraisal. Applied on May 1, credit report/income/assets fine, credit score of 800, appraiser came on May 8, loan officer was calling me on May 15 to say appraisal came in at same figure we estimated, everything is looking good, as soon as underwriting approves it, we can schedule closing, blah blah. Then nothing for 3 weeks, so I call to inquire, what’s the delay? Was told underwriting rejected the appraisal. Why? What was wrong with the comps? One was over a... Read Full Article

Can you get a Reverse Mortgage on a Home with Acreage?

September 9, 2021     25 comments

Does the property have to be 5 acres or less? Wow, I wish I could answer this question in as few words as you asked it!  Unfortunately, though, this is going to take a little longer. Because if I had to answer it in just a couple words I would have to say, "it depends". We get this question often and so I will try to give you an answer that doesn't get too lengthy but also covers enough to be meaningful. No Maximum Acreage Defined... Read Full Article