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What to Expect from the Reverse Mortgage Appraisal Process

February 27, 2024     39 comments

Getting a home appraisal is an integral part of the reverse mortgage process.  Here's what you need to know to manage your expectations about getting your home appraised as part of this loan to help you age in place. It's a multi-step process, but you can prepare in advance to make it as smooth as possible. Typically, there will be three steps: The inspection.  During the inspection, the appraiser will walk through the home with you and take any necessary photos as part of the research process.  They will focus... Read Full Article

Reverse Mortgage Options for Veterans in 2024

February 25, 2024     17 comments

Question from our reader: "We have a reverse mortgage, but we were never told there was a reverse mortgage for veterans.  We have quite a bit of equity in our home.  Can we refinance our current reverse mortgage to a VA reverse mortgage?"  Understanding FHA and VA Loan Mechanisms FHA and VA's Indirect Role in Loans:  It's important to clarify that neither the Federal Housing Administration (FHA) nor the Department of Veterans Affairs (VA) directly provides loans to consumers.  While the FHA, operating under the Department of Housing... Read Full Article

Proprietary Reverse Mortgage: 2024 Lenders, Rates & Limits

February 22, 2024     4 comments

Are you considering a reverse mortgage, and perhaps you're curious about the distinctions between a "HECM" and a proprietary reverse mortgage? In this overview, you'll learn about the following: What is a proprietary reverse mortgage? When is it better than a Home Equity Conversion Mortgage (HECM) What are the qualifications? How do the costs compare to a HECM? Types of Reverse Mortgage Products 'Regular' reverse mortgage (HECM) Proprietary reverse mortgages (Non-FHA) Jumbo reverse mortgages - explicitly designed for high-value homes What is a proprietary reverse... Read Full Article

Why Reverse Mortgages Have 2 Notes & 2 Trust Deeds

February 19, 2024     55 comments

Borrowers often encounter confusion as they approach the crucial moment of signing their final documents for a reverse mortgage.  They are introduced to a First and Second Trust Deed Note and Two Deeds of Trust (or mortgage, depending on the state laws applicable to the property). Compounding the complexity, the amounts specified on the Note and Deed of Trust can be substantially higher than the sum the borrowers agreed to borrow.  This discrepancy has led some borrowers to hesitate or even refuse to sign the documents at closing, primarily because... Read Full Article

Reverse Mortgage Closing Costs & Fees Explained

February 18, 2024     6 comments

When considering a reverse mortgage, it's important to understand the various costs involved.  These expenses can differ significantly, not just between different lenders but also based on your home's location. To ensure you're getting the best possible deal, it's smart to shop around and compare lenders.  Among the costs, the origination fees (which cover the setup of your loan) and the lender's margin (determining your loan's interest rate) are particularly important to pay attention to. Interest rates are another important factor.  They represent the cost of borrowing money and will... Read Full Article

2024’s Best Reverse Mortgage Companies: Top 20 Lenders Reviewed

February 18, 2024     no comments

A reverse mortgage can add stability to your retirement years when used correctly, and selecting the right reverse mortgage company to originate your loan is essential.  We created this guide to provide insight into how HECM lenders are rated and how reviews are collected across the web (independent and sponsored review sites). We want to make things easier for you.  That's why we have compiled a list of the top 20 reverse mortgage companies nationwide.  What's more, we have included 5 essential tips for choosing the right reverse mortgage lender... Read Full Article

3 Advantages of Making Payments on a Reverse Mortgage

February 15, 2024     32 comments

A reverse mortgage allows you to receive payments from your home equity rather than make a monthly payment to repay the obligation. One little-known fact, for example, is that you can get a reverse mortgage and can make payments on it when that meets your goals and if you want to.  Or, you can turn it into an interest-only mortgage, meaning you don't pay toward the principal of the loan, just the interest that's accruing. Why make repayments on a reverse mortgage loan? 1.  Easier to qualify compared to... Read Full Article

HECM: A Simple Guide to Home Equity Conversion Mortgages

February 14, 2024     6 comments

While many people are familiar with the concept of a reverse mortgage, fewer know the ins and outs of HUD's reverse mortgage program, the Home Equity Conversion Mortgage (HECM).  This type of reverse mortgage comprises the vast majority of reverse mortgages closed in the U.S., is insured by the Federal Housing Administration, and follows the rules and regulations set by the Department of Housing and Urban Development (HUD). While some states have specific rules that apply to reverse mortgages beyond what the HECM program requires, the program is offered nationally,... Read Full Article

Reverse Mortgage Downsides Explored: Separating Fact from Fiction

February 11, 2024     15 comments

Reverse mortgages can seem confusing and are often surrounded by myths, especially about their downsides.  These tools are meant to help seniors use the value of their homes without having to move out, but they are often not well understood.  In this article, I want to clear up any confusion by looking at the ten most common worries people have about reverse mortgages. I'll use expert opinions and facts to clarify things and challenge the myths.  This will help you understand reverse mortgages better.  Whether you're considering getting a reverse... Read Full Article

Using a Reverse Mortgage Purchase for New Construction

February 9, 2024     22 comments

Can a contractor build a new home for you and finance it with a reverse mortgage upon completion?  Thank you -Bob The short answer to your question is, yes, you can.  As a matter of fact, HUD has just made changes to the program effective in 2024 and made financing reverse mortgage purchases and new construction easier than ever with a reverse mortgage. HUD Policies on Reverse Mortgages for New Construction In the past, HUD would not allow a prospective reverse mortgage borrower to even start their... Read Full Article