5 Rules that Apply to Reverse Mortgages in 2022

October 10, 2022     14 comments

Applying for and taking out a reverse mortgage loan is an important decision for senior homeowners, and it’s one that deserves time and research. Reverse mortgages enable homeowners 62 years or older to supplement their retirement income by converting a portion of their home’s equity into accessible cash flow.  Reverse mortgages are powerful financial tools, but they are not one-size-fits-all. To fully understand the ins and outs of this product, homeowners should remember and be aware of the following rules: 1. There’s a Lending Limit for HECM Loans As... Read Full Article

What to Expect from the Reverse Mortgage Appraisal Process

October 3, 2022     61 comments

Getting a home appraisal is an important part of the reverse mortgage process. Here’s what you need to know so that you can 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 will take any necessary photos as part of the research process.... Read Full Article

Reverse Mortgage Servicing: Setting the Record Straight.

September 28, 2022     34 comments

How Reverse Mortgage Servicing Works Loan servicing is a critical component to the reverse mortgage process. It’s also one of the most misunderstood functions by borrowers. A reverse mortgage goes through several different cycles throughout the life of the loan. The loan begins in the origination stage, moves to closing and then enters the servicing phase, where the reverse mortgage will remain throughout the life of the loan - but that doesn't necessary mean that it will stay with the same servicer throughout the life of the loan!. Reverse mortgage servicing is... Read Full Article

How to use a Reverse Mortgage in a Divorce Settlement

September 27, 2022     105 comments

You may have heard about the ways in which a reverse mortgage can help improve your financial situation by allowing you to withdraw the equity in your home over time. For those people meeting the 62-year-old age requirement who have substantial equity in their homes, this can be a means to expand monthly cash flow or eliminate mortgage payments by paying off an existing mortgage through a federally insured loan. However, there is another important time when a reverse mortgage can be a helpful tool: in a divorce. While taking... Read Full Article

Reverse Mortgage Purchase: Down Payment, Rates & Eligibility

September 24, 2022     74 comments

What is a reverse mortgage purchase? Reverse mortgage loans are often used by people who want to stay in their homes. Another type of reverse mortgage, called a reverse mortgage for purchase, allows borrowers to buy a new home during the transaction. You can take out a reverse mortgage and purchase a new home all in one transaction through the reverse mortgage for purchase program, often through the Home Equity Conversion Mortgage (HECM) for purchase program. For those looking to move into a new home and stay there as they... Read Full Article

How a Reverse Mortgage Deed in Lieu of Foreclosure Works

September 19, 2022     62 comments

Hello ARLO, 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... Read Full Article

Is a Reverse Mortgage Right for You? 3 Questions to Consider!

September 17, 2022     11 comments

Like many Americans in retirement, you may find yourself wondering about the best financial course to take and how to best use the money and assets you have worked to build over time. You probably have built up your equity over the years and you may even own your home free and clear. For many baby boomers, the home is the largest asset they have and may be wondering if a reverse mortgage is right for you. If you are thinking about a reverse mortgage, here are some things to... Read Full Article

Reverse Mortgage Property Requirements (Updated 2022)

September 17, 2022     84 comments

I would like to know the exact reverse mortgage property requirements such as central heating, water wells, septic systems, etc. To hear these reverse mortgages advertised, one might get the impression that getting one is very simple. However, after some preliminary inquiries it's beginning to look like everything else where the government is involved – it can become incredibly complicated. "Exact requirements" vary with each scenario. For example, HUD does not require homes to even have central heat, just an acceptable permanent heat source that is in... Read Full Article

In Reverse Mortgages, The Expected Rate is the Key to the Principal Limit

September 12, 2022     4 comments

Most people are aware that they will receive a percentage of their home’s value or the HUD Lending limit (whichever is less) based on their age when qualifying for a reverse mortgage.  This maximum loan amount available to the borrower is referred to as the “Principal Limit”. However, something of which many consumers are not aware is the effect of the  “Expected Interest Rate” as it applies to their available proceeds on a Reverse Mortgage Loan.   The Expected Interest Rate is a rate used at the start of... 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