Shocking Truth About Condominiums and Reverse Mortgages

December 2, 2019     40 comments

Update 12/02/2019 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... 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     8 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     20 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

Reverse Mortgages Aren’t For Everyone, But They Are NOT Scams.

November 30, 2019     8 comments

Comment from our reader: The reverse mortgage is a scam! I am a banker and I see everyday 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 than... 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

3 Options if You Married Someone with a Reverse Mortgage

November 29, 2019     8 comments

Kai has sent the following question Ask ARLO! My fiancé' (age 68) has a reverse mortgage on his home. I believe it was signed in 2017. We live in WA state and have a de facto marriage 9 years now but are going to legally marry this year. What rights do I have to stay in the home should he die? I am 61. Hello Kai, You have two different issues and I can only really address one. The first is the title. If you are not on title... Read Full Article

Here’s the Real Truth About Reverse Mortgages (No BS)

November 29, 2019     11 comments

A recent comment from our reader: To whom it may concern: I have read so many reverse mortgage info. It sounds like it’s not really to help you but for the bank to help themselves. It’s designed to make you think they are helping you, but the truth is you are really giving away your home. You are selling it to them for a very low price. If you get the reverse loan in Dec. 2012 and die in Jan. 2013 you have lost your home, you just gave it... Read Full Article

How Reverse Mortgages Finally Became Safe

November 29, 2019     no comments

The decision to take out a Home Equity Conversion Mortgage  is a big one, and you may be wondering how safe this government-insured loan program is. While reverse mortgages aren't right for everyone, the HECM program has several built-in protections designed to keep borrowers safe. Safeguard #1 - Federal guarantee One of the program’s biggest protections is that it is insured by the FHA. (Federal Housing Administration) You as the borrower pay an upfront mortgage insurance premium when you take out a reverse mortgage that varies depending on... Read Full Article