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Can I get a reverse mortgage while in Chapter 13 bankruptcy?

January 20, 2017     10 comments

We are under chapter 13 bankruptcy would we be able to do a reverse mortgage? I am 64 my husband is 78 HUD has different requirements for the purchase program and someone who is doing a loan on their existing property.  If your desire is to utilize the reverse mortgage for purchase program, you cannot have a bankruptcy for the previous 24 months prior to the loan. If you are looking at doing a loan on your existing property, you can do a reverse mortgage, even if you are still... Read Full Article

Reverse Mortgage Final Rule Takes Effect September 19, 2017

January 20, 2017     no comments

Reverse Mortgage Final Rule The purpose of this bulletin is to announce upcoming changes to HECM program due to the HUD Final Rule. This bulletin summarizes the key changes affecting the origination of HECM loans. Additional guidance on how to implement and apply the below changes is forthcoming. Implementation The changes will take effect on all loans with a case number assignment date on or after September 19, 2017 for all channels. The changes are not retroactive for loans with case numbers assigned prior to September 19, 2017.... Read Full Article

Can I get a New Reverse Mortgage?

January 19, 2017     no comments

I received notice from unnamed company indicating my property value has increased and I might be eligible for a new reverse mortgage with additional cash lump sum or increased line of credit. Is this a scam? We don't participate in this type of marketing because we don't agree with it but it is not a scam.  If your property goes up enough in value so that even with the changes to the HUD program over the years, you meet the HUD and industry parameters for a new reverse mortgage and you... Read Full Article

Why Does a Reverse Mortgage Have a Balloon Repayment?

January 19, 2017     4 comments

With regard to balances going up and equity going down, this sounds like those nightmare balloon situations one hears of. Is the rate of interest fixed for the life of the loan, and is it possible to make payments against principle? You packed a lot into a very short comment/question! Any time a loan has a single repayment instead of requiring equal monthly payments over a period of time, it is considered a "balloon" payment. Not all balloons are equal though. The reverse mortgage requires a single repayment when a... Read Full Article

Can I get a Reverse mortgage Purchase with a Line of Credit?

January 19, 2017     no comments

I am close to 62 years old and am looking to purchase a home with a reverse mortgage. After escrow is closed, will I get either a line of credit or payments for this transaction? When using a reverse mortgage to purchase a home, most borrowers use all their eligible funds to complete the purchase, which means there are typically no funds left over to create a line of credit or receive monthly payments. Let’s say you’re 62 years old and are buying a home using today’s reverse mortgage programs. The HECM LIBOR... Read Full Article

Can my attorney review sample documents / loan agreement?

January 19, 2017     no comments

If I decide on a reverse mortgage with your company, would you have any objections to my attorney reviewing the sample documents before signing? There is never a problem with your attorney reviewing anything you sign but I would just like to ask to which documents you are referring?  Do you mean the original application package, the final loan documents that actually constitute the loan agreement or both?  The reason I ask is because both sets of documents afford you ample time to receive legal counsel before you are in any way... Read Full Article

Reverse Mortgage Interest Rate Cap Explained

January 19, 2017     2 comments

Can the loan balance grow beyond the value of the house? I thought there was a cap of 60% of the value of the house? There is no "cap" on the amount of interest that can accrue. In many cases, especially if the value of the home declines as they have done in recent years, the balance of the reverse mortgage did exceed the value of the home. Although I saw several bad articles chided reverse mortgage for this fact, it actually worked to the borrowers' advantage and the... Read Full Article

Are the rules for all reverse mortgages the same?

January 19, 2017     no comments

Are the rules for all reverse mortgages the same? Not all rules are the same in the same states let alone from state to state.  There are more than one reverse mortgage programs available but the main program being originated today is the HUD Home Equity Conversion Mortgage (HECM or "Heck-um").  The HECM accounts for the vast majority of all the reverse mortgages originated at this time and there are just a few jumbo loan programs that have completely different guidelines and are not government insured. Even so, HUD only establishes the... Read Full Article

Why is the reverse mortgage amount so low?

January 19, 2017     no comments

Why am I allowed such a small amount (60% of the value of my home) on a Reverse Mortgage? Hi Shirley, The reverse mortgage program is meant to allow you to live in your home, payment free for the rest of your life.  The equity in the property is always yours.  So while you are allowed 60% now, the other 40% that remains in the equity is yours as well.  You can sell the home anytime you wish and that equity would be yours. HUD is not buying your home. ... Read Full Article

How does a reverse mortgage work for heirs?

January 19, 2017     no comments

Question #1 HOW MUCH INTEREST IS ACCUMULATED ON A $100,000 REVERSE MORTGAGE AT THE END OF 10 YEARS TO PAY BACK.. Question #2 WHAT IF YOUR HOUSE PROPERTY DEVALUES WAY BELOW AMOUNT GIVEN AND YOU HAVE NO WAY TO ECONOMICALLY PAY BACK..EA.HOUSING SLUMP.... Question #3 HOW DOES A REVERSE MORTGAGE WORK FOR MY HEIRS? IS IT POSSIBLE TO PUT ONE OF YOUR CHILDREN ON THE OFFICIAL LOAN APPLICATION SO AS TO KEEP HOME IN FAMILY AND HAVE A PLACE TO LIVE IN AND RAISE A NEW FAMILY (GRANDCHILDREN)...THIS WOULD BE... Read Full Article