Proprietary Reverse Mortgage: Rates, Limits & Loan-to-Values

December 7, 2019     14 comments

Are you thinking about taking out a reverse mortgage? Have you heard the word ‘proprietary’ thrown around, and wonder what the differences are between a ‘regular’ and ‘proprietary’ reverse mortgage? Read on to learn about what those differences are, and what you should know when thinking about whether any reverse mortgage is right for you. In this overview, you’ll learn about the following topics: What does ‘proprietary’ mean? What is a ‘regular’ reverse mortgage? What is a ‘proprietary’ reverse mortgage? Maximum reverse mortgage proceeds Why would I bother with a... Read Full Article

2020 Reverse Mortgage Limits Officially $765,600

December 4, 2019     2 comments

HUD just announced that the current reverse mortgage loan limit for the HUD Home Equity Conversion Mortgage (HECM) will be raised from $726,525 to $765,600 effective January 1, 2020. The HUD Mortgagee Letter announcing the increase, can be found on the HUD website here: https://www.hud.gov/sites/dfiles/OCHCO/documents/19-20hsgml.pdf . After the limits remained unchanged for many years, this is the 4th year in a row where HUD has raised the lending limit. It had remained stagnant at $625,500 since 2009 when the limits were originally raised from $417,000 as part of the American... Read Full Article

Here’s the Timeframe to Vacate Home After Reverse Mortgage

December 3, 2019     2 comments

Hello ARLO - My father passed away in October 2018. He had a live-in caretaker for several years. I decided to sell the house in California, while the caretaker is occupying the home to keep the property safe and away from squatters and facilitate the viewing. One offer from a buyer fell through and the caretaker approached my agent wanting to put in an offer and Celink has been working on the short sale approval on his offer for 2 months, with very little communication and feedback. The appraisal... Read Full Article

Shocking Truth About Condominiums and Reverse Mortgages

December 2, 2019     48 comments

HUD Sends Publishes New Single Condo Rules, Not as Much Relief as Hoped. Senior homeowners who owned condominiums in projects that were not approved by HUD have been waiting for HUD to reintroduce a spot or single unit approval process since it first disappeared in 2009. There were rumors of the spot approvals returning several times through the years until HUD made the announcement everyone was waiting for, the single unit approval was returning effective October 15, 2019. Borrowers lined up for the opportunity to finally obtain a reverse mortgage... Read Full Article

If I Take a Reverse Mortgage Does the Bank Own My Home?

November 30, 2019     2 comments

I just received a great question from from one of our visitors...  Am I applying for both a loan, and a line of credit? Where does the possibility of any cash equity affect me? What  I had been told was:  This is to be a simple transferral 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... Read Full Article

Jumbo Reverse Mortgage: Real-Time Rates, Limits & Eligibility

November 30, 2019     14 comments

This is the time to look  at the All-New 2020 JUMBO reverse mortgage programs. Traditionally, most borrowers, ages 62 and over, have benefited from the HUD Home Equity Conversion Mortgage (HECM or “Heck-um”). The reverse mortgage program has undergone some rough years. The Department of Housing and Urban Development (HUD) has made one move after another, making it harder to qualify and lowering Principal Limits (how much you receive). The changes that took effect as of October 2, 2017 have had a two-fold effect; lower Principal Limits and lowering the interest rate floor provided borrowers even... Read Full Article

Reverse Mortgage Closing Costs & Fees Explained

November 30, 2019     22 comments

There are several closing costs borrowers are required to finance when getting a reverse mortgage. What many people don’t know is that some of the costs vary by lender and the area in which the borrower lives. It is in your best interest to shop around and compare prices when considering a reverse mortgage. Some of the most common variable costs include origination fees and appraisal costs. Rates will also have an impact on the amount you can borrow, and the amount of interest you’ll accrue over the course of the... Read Full Article

Truth Bomb: Reverse Mortgages are NOT Scams.

November 30, 2019     10 comments

Comment from our reader: The reverse mortgage is a scam! I am a banker and I see every day deceived elderly customers who get fooled by these "reverse mortgages", they end up losing everything and put their heirs in jeopardy.  - Tim I've been a mortgage banker for over 40 years and during that time I have worked for many big banks, mortgage companies and insurance companies with many different lending products. I would certainly say that there were many lending products that I would classify as less... Read Full Article

Reverse Mortgage Myth Busting – Uncover the Truths!

November 29, 2019     2 comments

Reverse mortgages are a financial product that have gotten a lot of bad press over the years, leaving many people who could potentially benefit from this type of loan with negative or problematic associations. What’s the real problem with the Reverse Mortgage? Is it really as bad as some media outlets would have you believe? The short answer is no, but don’t just take our word for it—we’ll prove it, too. For starters, reverse mortgages are becoming more common among borrowers of all ages, with nearly half of homeowners considering a reverse... Read Full Article

10 Tips for Using a Reverse Mortgage for Home Purchase

November 29, 2019     no comments

Are you planning to use a Reverse Mortgage to Purchase a Home?  The following tips will be handy... The sale must be an “Arm’s Length Transaction” which means that you must be buying 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... Read Full Article