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 2023)

September 17, 2022     88 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

Reverse Mortgage Manufactured Home Requirements for 2022

September 6, 2022     52 comments

If you’re the owner of a manufactured home and you’re wondering about your eligibility for a reverse mortgage, here’s the short answer: you may be eligible.  Now for the longer answer. As with any prospective borrower, you must be aged 62 or older, you must legally own the home, it must be your primary residence, and you must be eligible for participation in Federal Housing Administration programs. And if you have a manufactured home, yes, you can get a reverse mortgage—as long as it was built after June 15th, 1976. ... Read Full Article

How the Reverse Mortgage LESA Offers Peace of Mind

August 31, 2022     47 comments

How a “LESA” Set-Aside is Giving New Peace of Mind to Reverse Mortgage Borrowers Reverse mortgages have changed for the better. Reverse mortgages allow people 62 and older to tap into their home equity in the form of a non-recourse loan. They have new requirements and options making them safer and more sound for borrowers. In 2015, the Federal Housing Administration, which ensures Home Equity Conversion Mortgages (HECM, or the most common type of reverse mortgage) implemented new financial assessment requirements for all borrowers. In addition to required counseling, all loan applicants... Read Full Article

Yes, You Can Put Your Reverse Mortgage in Trust (2023 Update)

August 31, 2022     70 comments

I have the home in family trust. I am unmarried but have lived with my "wife" for years. She inherits the home by last will. Do we qualify for a reverse mortgage? The short answer is yes, you can have your home in a family trust if you have a reverse mortgage.  Firstly, as a lender, we only get so much information and then we do rely on the title and affidavits we receive when originating the loan. For example, we would do a title search and see that... Read Full Article

Credit Requirements for a Reverse Mortgage in 2023

August 30, 2022     58 comments

An important part of qualifying for a reverse mortgage is the evaluation of a borrower’s credit history. Whether you’re looking to supplement your retirement income, make repairs to your home or buy a new house altogether, a reverse mortgage can help.  But there will soon be a few additional steps to taking out a reverse mortgage, making the process more like that of getting a traditional “forward” mortgage. How will my credit history be examined for a reverse mortgage?  Your lender will evaluate your credit history as part... Read Full Article

Here are the Income Requirements for a Reverse Mortgage

August 30, 2022     42 comments

If you’re applying for a reverse mortgage for the first time, you will  be subject to meeting income requirements as part of the financial assessment underwriting guidelines.  The financial assessment for a reverse mortgage is a lot like the process for getting a traditional or “forward” mortgage. It’s a way for the lender to get a sense of your financial situation, to determine that you’ll still be on solid financial footing after you get the reverse mortgage. In addition to a credit analysis, one of the most important components of... Read Full Article

Who’s Responsible for Property Taxes on a Reverse Mortgage

August 27, 2022     39 comments

Who pays property taxes and insurance on a reverse mortgage? The normal way is for the reverse mortgage homeowner to pay their own taxes and insurance EXCEPT if you do not meet the residual income or credit requirements of the program. And then, instead of an automatic declination if your income or credit does not meet the requirements like a typical loan, then there is a second opportunity with a Life Expectancy Set Aside (LESA) wherein the funds are set aside to pay the taxes and insurance from the... Read Full Article