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

Would a reverse mortgage be a good option for younger spouse?

January 19, 2017     no comments

My husband is 63 and I am 60 - would reverse mortgage be a good option for us? - Patricia Hi Patricia, I'm afraid you have not given me much information.  You are not yet old enough to be on a reverse mortgage (all borrowers must be 62 years of age or older) and so you would have to come off of the title and your husband would have to do the loan in just his name.  You would be determined to be a non-borrowing spouse.   You could be... Read Full Article

Reverse mortgage on manufactured home with acreage?

January 17, 2017     no comments

Our stick built home is on 3 acres and is valued at about $375,000. In 2001 we added a manufactured home on the same property. It is on a permanent foundation, is permitted, has its own separate utilities and address. It is presently a rental and is valued at about $150,000. In checking with two different lenders both indicated that everything was in order except that their appraiser cold not find a comparable property therefore without an appraisal they could not complete my Reverse Mortgage. Do you have any suggestions?... Read Full Article

How much is the downpayment required for a HECM purchase?

January 17, 2017     4 comments

We understand to do a reverse purchase mortgage have to put at least 51% down. Using 100k as example, wife understands we can get back some of the 100k...if so, when? - Art Hello Art, Firstly, the amount you put down depends on your age and the value of the home as it relates also to the HUD maximum lending limits and interest rates.  At the age of 62 for the youngest borrower, the benefit amount is 52% assuming that the purchase price is not over $636,150 (any amount... Read Full Article

Here’s Why Harvard Supports Reverse Mortgages

January 14, 2017     no comments

The population of older Americans is growing and will continue to grow for the next two decades. By 2035, it is projected that one out of every three households in America will be headed by someone age 65 or older. But among the older adults, the percentage of those with low incomes will grow. In 2015, 15 million older adults earned less than 80% of their median incomes. By 2035, that number will increase to 27 million, according to a recent report from the Joint Center for Housing Studies of... Read Full Article