America’s #1 Rated Reverse Lender

How Financial Assessment Made Reverse Mortgages Safer

August 31, 2021     no comments

This financial assessment process is conducive to making the Home Equity Conversion Mortgage (HECM) an even safer loan product. If a potential borrower can swallow such an absurdity he need not be concerned about who this financial assessment (FA) is making the product safer for! The FHA wants .50% insurance and will only allow 60% loan to value and now wants additional insurance to secure the loan. What are sheep for if not to be sheared? I understand the skepticism and sentiment and I would wager that with the... Read Full Article

3 Options if You Married Someone with a Reverse Mortgage

August 31, 2021     25 comments

My fiance (age 68) has a reverse mortgage on his home. I believe it was signed in 2017. We live in WA state and have a de facto marriage 9 years now but are going to legally marry this year. What rights do I have to stay in the home should he die? I am 61. You have two different issues and I can only really address one. The first is the title.  If you are not on title to the property and something happens to your spouse,... Read Full Article

10 Tips for Using a Reverse Mortgage for Home Purchase

August 30, 2021     2 comments

Are you planning to use a Reverse Mortgage Purchase?  The following tips will be handy... The sale must be an “Arm’s Length Transaction, " meaning you must buy from a totally unrelated third party.  Purchases involving family members are not eligible. Has the property recently sold?  The property cannot have been sold less than 6 months prior to this sale, as that would be “property flipping.”  HUD does allow for some exceptions for HUD repos.  Check with us BEFORE you make an offer. You will need to be able... Read Full Article

You Keep Ownership with a Reverse Mortgage, Not the Bank!

August 30, 2021     14 comments

With a reverse mortgage, am I applying for both a loan and a line of credit?  Where does the possibility of any cash equity affect me? I had been told this would be a simple transfer of my home to the company, with no further mortgage payments from me for the rest of my life.  Upon my passing, the bank will own my home.  Am I too simple and naive in my understanding and explanation? I remain interested and confused. -Don C. Reverse mortgages are nothing but a loan... Read Full Article

How the SOFR Index Affects Reverse Mortgage Rates

August 25, 2021     2 comments

For several years, adjustable-rate reverse mortgages used a variety of indexes that determined a benchmark interest rate, which, when added to a margin set by the lender, would determine the final interest that borrowers would accrue on their loan. The rules for the choice of an index is that it had to be out of the lender’s control and had to be a readily published rate. LIBOR history  Some of the more common indexes over the years include the U.S. Prime Rate, the various treasury-based indexes (MTA, CMT), the... Read Full Article

HECM-to-HECM Refinance ‘5-Times’ Benefit Rule Explained

August 25, 2021     8 comments

For some existing reverse mortgage borrowers – particularly borrowers who have a Home Equity Conversion Mortgage (HECM) sponsored by the Federal Housing Administration (FHA) – a number of factors may lead them to ask if it is both possible and/or beneficial to potentially refinance their existing loan into an offering with more advantageous terms. The short answer to this is yes, it is possible to refinance a HECM reverse mortgage. Refinancing can come with several possible benefits, including increasing the amount of money that you’re able to borrow from the... Read Full Article

NOVAD Reverse Mortgage Problems – Please Help!

August 25, 2021     126 comments

ATTENTION: This website is NOT affiliated with Novad. To contact Novad servicing, call HUD’s FHA Resource Center at  (877) 622-8525 My mother passed in Oct. of 2018 in a nursing home. Prior to her death as POA I surrendered the home by registered letter to Novad, a HUD management company, requesting a Deed in Lieu of Foreclosure. As of March 2020 they have not taken over the title to the home and the tax collector is trying to get "The Estate of..."to pay the taxes and the estate has no funds nor... Read Full Article

Reverse Mortgage Fixed Rate & Unusable Funds Explained

August 23, 2021     6 comments

If you have decided that you’d like to use a reverse mortgage to tap into your home equity while remaining in your home, there are several considerations that will help you determine how to make the most out of your loan.  A reverse mortgage can be an excellent way for some households to boost their cash flow in retirement, establish a “rainy day” fund for health care expenses or other unexpected costs, or provide a lump sum for a pressing expense such as home renovations or maintenance. If you are... Read Full Article

Reverse Mortgage Attorney Asks: Rules of Spouse & Survivorship

August 23, 2021     28 comments

Hello ARLO, Husband & Wife, both over 70-years-old, occupied principal residence in California for many, many years and have no other home. Husband had a fall in late 2016 and was discharged from the hospital to a board & care facility to recover. Husband had been at board & care facility for 4 months when husband & wife applied for a reverse mortgage in early 2017 seeking to both be borrowers on the loan. The home was Husband's permanent place of abode, and he had no other permanent residence.... Read Full Article

Advantages and Disadvantages of Fixed Rate Reverse Mortgages

August 23, 2021     4 comments

Fixed Rate Reverse Mortgages – which is right for you? Many senior borrowers have been raised on the idea that a fixed rate loan is the “only way to go”. Still others remember back to the early 80’s when interest rates climbed as high as 18%. Some borrowers experienced rising interest rates from adjustable rate loans (or knew others who did) and some remember family and friends whose payments rose to a point where they could no longer afford their homes. A fixed rate locks the rate in for the... Read Full Article