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How Reverse Mortgage Financial Assessment Works in 2025

September 15, 2021     6 comments

Updated March 13, 2025 When it comes to reverse mortgages, a crucial step in the process is the financial assessment – a set of guidelines developed by HUD (the U.S. Department of Housing and Urban Development).  This assessment is more than just a formality; it's a safeguard designed to protect both the borrower and the government, which insures most of these loans. Why a Financial Assessment? The main goal of the financial assessment is to ensure that, as a borrower, you're in a strong position to manage specific financial... Read Full Article

Resource for Conservators Seeking Reverse Mortgages

September 14, 2021     8 comments

Taking out a reverse mortgage on a property 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 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 that individual's finances and estate, whom they deem incapable of making their own decisions. For example, adult... Read Full Article

Can I Protect My Girlfriend Not On My Reverse Mortgage?

September 13, 2021     6 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

What Happens When Your Reverse Mortgage Money Runs Out?

September 13, 2021     19 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 understanding is that I can live there for as long as I am 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... Read Full Article

Reverse Mortgage Appraisal Disputes and Rebuttals

September 13, 2021     17 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     39 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

Learn How Reverse Mortgages May Affect Your Taxable Income

September 9, 2021     18 comments

The economic downturn has taken its toll on many American households and especially on retirees. In fact, one study from Wider Opportunities for Women indicates that more than half of older households have incomes that don’t cover their basic living expenses. To help, many baby boomers are turning to the equity they’ve built up in their homes to help by using a federally-insured Home Equity Conversion Mortgage (HECM) reverse mortgage. Reverse Mortgages don't necessarily affect your income taxes but before you take out the loan, it’s important to consider how the proceeds... Read Full Article

HECM vs HELOC Comparison: Features & Decision Guide by ARLO™

September 9, 2021     12 comments

Reverse Mortgages Can Be a Solution to Major HELOC Resets. There will soon be significant changes for many Home Equity Line of Credit (HELOC) borrowers that could amount to considerable increases in payments. But a solution may also be available for those who qualify: a reverse mortgage line of credit.  In the next few years, many homeowners who have taken out a Home Equity Line of Credit (HELOC) will encounter a potential reset, which means their monthly payments could soar. Some homeowners could benefit from switching to a reverse mortgage... Read Full Article

Options When a Spouse Dies with a Reverse Mortgage

September 8, 2021     20 comments

Under the old reverse mortgage rules, non-borrowing spouses of reverse mortgage borrowers did not have the same rights borrowers did. In fact, in some cases where both spouses were living in the house but only one was named on the home title, those non-borrowing spouses were left without many options after the borrower spouse died. These cases have been covered by mainstream media and often made headlines due to the unfortunate situation they presented. But all that has changed. The federal government has implemented new rules to protect... Read Full Article

Issues with Reverse Mortgages & Adult Children Living in Home

September 8, 2021     24 comments

My mother has a reverse mortgage and I've been reading and trying to understand it all. Basics... her house was appraised at 390,000 back in 2007, she owed 113,000 on a previous loan. "Original principal limit" 234,000 minus the 113,000 leaves 121,000. Her payment plan was the line of credit which was 99,000. First question; where does or who the remaining 22,000 of that go? She receives statements all the numbers (Loan Balance) go up every statement. Starting at 234,000 and now at 268,000. "Growth of principal limit" and "service... Read Full Article