Reverse Mortgage and Medicaid — How Proceeds Affect SSI, Medicaid & Eligibility

December 27, 2024     54 comments

Reverse mortgage proceeds can provide valuable financial support, but they may also influence your eligibility for Medicaid or Supplemental Security Income (SSI). Understanding these potential effects is essential for making informed decisions. If you're 62 or older and considering a reverse mortgage to supplement your retirement income, it's important to evaluate how this choice could impact your access to needs-based programs. Careful planning can help you make the most of this financial tool while preserving your benefits. Understanding Means-Tested Benefits Means-tested benefits are based on an... Read Full Article

Non-Recourse Reverse Mortgage Protections Explained

December 27, 2024     31 comments

The non-recourse feature of reverse mortgages is a powerful safeguard, yet it's often misunderstood. It's even sparked debates — like the AARP lawsuit against HUD — over its scope. Simply put, a non-recourse reverse mortgage ensures you'll never owe more than your home's value when the loan matures. But how does this protect you and your heirs? Let's break it down. How Non-Recourse Protection Works Picture this: A 66-year-old homeowner with a $500,000 home secures a $321,000 fixed-rate reverse mortgage. After 20 years of no payments, interest pushes the... Read Full Article

Reverse Mortgage vs. HELOC — Which Is Smarter for Retirees? Line of Credit Comparison

November 18, 2024     21 comments

As retirees seek ways to supplement their income or cover expenses, accessing the equity in their home can be a practical solution. Two popular options for doing so are the Home Equity Line of Credit (HELOC) and the Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage. While both allow homeowners to unlock the value of their property, they differ in terms of eligibility, repayment terms, and long-term impact on finances. In this article, we'll explore the key differences between a HELOC and a reverse mortgage, helping you... Read Full Article

Is a Reverse Mortgage a Scam? — A 45-Year Mortgage Banker Responds

September 8, 2024     32 comments

The reverse mortgage is a scam! I am a banker, and I see elderly customers getting deceived daily by these 'reverse mortgages.' They end up losing everything and put their heirs in jeopardy. -Tim As a mortgage banker with over 45 years of experience, I've worked with many major banks, mortgage companies, and insurance firms, handling a wide range of lending products. While some financial products can be less favorable or risky for borrowers, reverse mortgages are not a scam. The key to avoiding confusion and misinformation is education. Understanding... Read Full Article

Here’s an Ideal Reverse Mortgage Purchase Example

July 12, 2024     5 comments

Understanding the Reverse Mortgage for Purchase Program Many seniors prioritize finding a home that suits their lifestyle as they retire. Whether they’re looking to downsize, rightsize, avoid stairs, or find a low-maintenance property, the Reverse Mortgage Purchase program—also known as HECM for Purchase or "H4P"—is a valuable option that’s often overlooked. If you’re 62 or older, this HUD-insured program allows you to buy a new home without the burden of traditional mortgage payments. It offers the flexibility to move into a home that better meets your needs in retirement... Read Full Article

Buy a 2-4 Unit Property with a Reverse Mortgage — HECM for Purchase Multifamily Guide

July 12, 2024     14 comments

Exploring Reverse Mortgages for Purchasing Multifamily Units If you're retired and thinking about downsizing, moving closer to loved ones, or finding a more suitable living arrangement, the reverse mortgage purchase program might be a great option for you. This government-insured reverse mortgage is available to individuals aged 62 or older and allows you to use the equity in your current home to buy a new property, which can include up to four units in a single transaction. Unlike traditional mortgages, where your loan balance decreases as you make payments,... Read Full Article

Proprietary Reverse Mortgage — Jumbo Loan Options Up to $4M vs. HECM Comparison

June 20, 2024     12 comments

Are you considering a reverse mortgage but unsure about the differences between a Home Equity Conversion Mortgage (HECM) and a proprietary reverse mortgage? You've come to the right place. In this guide, we'll cover: What a proprietary reverse mortgage is When a proprietary reverse mortgage might be better than a HECM Qualifications for a proprietary reverse mortgage How the costs compare to a HECM Whether you're a homeowner looking to maximize your financial options, a family member helping a loved one, or simply curious about the benefits of proprietary reverse... Read Full Article

5 Rules for Getting a Reverse Mortgage — Eligibility, Counseling, Property & Payment Options

June 17, 2024     19 comments

Reverse mortgages can provide older homeowners with financial flexibility, but navigating the rules doesn't have to be daunting. As of 2026, important updates to reverse mortgage guidelines have been introduced, making it crucial for those 62 and older to stay informed. If you're considering tapping into your home equity, this guide simplifies the five essential rules for reverse mortgages. From eligibility requirements to key protections, we'll cover everything in clear, straightforward language to help you make a confident decision about your future. Let's explore these rules step by step so... Read Full Article

Using a Reverse Mortgage Purchase for New Construction

June 14, 2024     22 comments

Can a contractor build a new home for you and finance it with a reverse mortgage upon completion? Thank you -Bob The short answer to your question is, yes, you can. As a matter of fact, HUD has made changes to the program that make financing reverse mortgage purchases and new construction easier than ever with a reverse mortgage. HUD Policies on Reverse Mortgages for New Construction In response to evolving needs in the housing market, HUD has continued to refine its approach to reverse mortgages on new construction... Read Full Article

How the Reverse Mortgage Margin & Libor Rate Works

June 10, 2024     8 comments

Understanding Your Reverse Mortgage: Key Factors One of the most common questions about a reverse mortgage is how much money you, as the borrower, can receive.  The amount you can get depends mainly on two factors: your age and the loan's interest rate and margin. Typically, the older you are, the more money you can receive.  Lower interest rates also mean you can borrow more.  A higher loan margin means the interest rate must be lower to increase the amount you can receive from a reverse mortgage. The important... Read Full Article