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Shocking Truth About Condominiums and Reverse Mortgages

December 6, 2022     82 comments

Many senior borrowers eligible for reverse mortgages or about to become qualified and live in condominium projects have yet to learn of the surprises that may be waiting for them.  You may know neighbors who live in your project, currently have reverse mortgage financing, and have heard about how easy it was. Unfortunately, changes in condominiums and HUD programs in the past few years have changed much of this.  If you live in a condominium, before you start making plans that include a reverse mortgage, you should know about the... Read Full Article

What is AARP’s Role in Reverse Mortgages?

November 29, 2022     21 comments

The American Association of Retired Persons (AARP) is a large, independent, nonprofit organization dedicated to helping people ages 50-plus achieve financial independence. While the organization, which serves 37 million older Americans and counting, doesn't offer reverse mortgage products directly, it does weigh in on them in some significant ways. Here's where AARP comes into play for retirees who may be looking into getting a reverse mortgage as a means to age in place. What does AARP think of reverse mortgages? AARP has supported reverse mortgage products to help... Read Full Article

Why Higher Rates Can Make the Best Time for Reverse Mortgages

October 26, 2022     no comments

Why would someone use a reverse mortgage while rates are up?! Due to inflation, interest rates have been climbing since early this year and borrowers receive less money on the loan at today’s rates than they did even a year ago.  However, it may still make sense for seniors to consider a reverse mortgage over moving, and here’s why.  Senior equity has risen to over 11 trillion dollars in the US. In many areas the market is getting much softer with the higher rates.  Houses are beginning to take longer to sell and... Read Full Article

Reverse Mortgage Servicing: Setting the Record Straight.

September 28, 2022     38 comments

Understanding Reverse Mortgage Servicing Reverse mortgage servicing is a vital yet often misunderstood part of the loan process. While borrowers focus on securing their loan, many don’t realize that servicing plays a long-term role in managing their reverse mortgage. A reverse mortgage moves through several stages: it starts with origination, proceeds to closing, and then enters the servicing phase—where it remains for the life of the loan. However, that doesn’t mean your loan will stay with the same servicer indefinitely. Servicing rights can be transferred, and understanding how this... Read Full Article

How a Reverse Mortgage Deed in Lieu of Foreclosure Works

September 19, 2022     72 comments

My mom procured a reverse mortgage when property values were high. She can no longer live alone in the home and has vacated it; we cannot sell it because the home has devalued in accordance with the failed economy. The family is attempting to process, through an attorney, a Deed in Lieu of Foreclosure, but the loan has been transferred to 3 different loan companies since mom vacated the property 5 months ago, and they have ignored the attorney's letters and continue to send mailings telling my mom that they... Read Full Article

Reverse Mortgage Expected Rate is Key to the Principal Limit

September 12, 2022     6 comments

Many homeowners understand that when they qualify for a reverse mortgage, they're eligible for a loan amount that's a percentage of their home's value or the HUD Lending limit, whichever is lower.  This amount, commonly known as the 'Principal Limit,' is a key factor in reverse mortgages. Yet, the 'Expected Rate' is a lesser-known aspect that significantly impacts the available funds from a reverse mortgage.  Understanding how this rate influences the loan proceeds is crucial for consumers considering a reverse mortgage. Reverse Mortgage Expected Rate: Impact and... Read Full Article

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, 2022 when HUD announces those changes in just a few weeks.   This is a very large increase for a single year, especially given the increases the program has seen over... Read Full Article

Reverse Mortgage Manufactured Home Requirements (2025)

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. And if you have a manufactured home, yes, you can get a reverse mortgage—as long as it was built after June 15, 1976.  Why is this particular date so important? ... Read Full Article

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 much information.  Then, we rely on the title and affidavits we receive when originating the loan. For example, we would do a title search and see that the current title... Read Full Article

Who’s Responsible for Property Taxes on a Reverse Mortgage

August 27, 2022     44 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. The Basics: Homeowner Responsibility With a reverse mortgage, you still own your home and must pay property taxes and homeowner’s insurance.  The loan doesn’t cover these unless you qualify... Read Full Article