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3 Advantages of Making Payments on a Reverse Mortgage

    38 comments
A reverse mortgage allows you to receive payments from your home equity rather than make a monthly payment to repay the obligation. One little-known fact, for example, is that you can get a reverse mortgage and make payments on it when that meets your goals.  You can also turn it into an interest-only mortgage, meaning you don't pay toward the principal of the loan, just the accruing interest. Why make repayments on a reverse mortgage loan? 1.  Easier to qualify compared to conventional loans. You may still be eligible... Read Full Article

Appraisers Use the Sales Comparison Approach (Not Zillow etc.)

    2 comments
Here is where Appraisals are not updated and correct. Zillow and others use sales per sq ft for cookie-cutter homes. They omit custom built homes in comparable homes because of lack of construction knowledge and insurance coverage? Costs of replacement coverage and appraisals would place a 5000 sq ft total home cost at $800,000-min w/o lot? Go Figure how you could be insulted at $600k on a no-nothing Appraisal. You just hit the nail squarely on the head, but from an angle you didn't mean to go.  Appraisers don't... Read Full Article

6 Questions to Ask Your Reverse Mortgage Loan Officer

    4 comments
You've made the decision to pursue a reverse mortgage, and now you're meeting with a loan officer for the first time.  Though you may understand the basics of a reverse mortgage, there are certain questions you may want to bring with you for your first meeting to clarify some of the details that could potentially catch you off guard down the road. Here are 6 questions to address in your first meeting with your reverse mortgage loan officer: 1.  How do I get counseling? Scheduling your counseling... Read Full Article

How Occupancy Fraud Threatens the Reverse Mortgage Program

    28 comments
Because of health issues, I've moved my Mom in with me, and at some point, I will most likely have to move her to a nursing home. Her granddaughter lived there until a couple of weeks ago. She has wrecked the house. The monthly statement has the house at way more than I could ever sell the place for to pay it back. What are my options? ~Jan Reverse mortgages are designed as non-recourse loans, offering a significant safety net for borrowers and their estates. In situations where the property's... Read Full Article

Reverse Mortgage Credit Requirements in 2025: What Borrowers Need to Know

    64 comments
Qualifying for a reverse mortgage involves more than just your home’s equity—it also includes a review of your credit history.  In 2025, lenders will focus on factors like payment history and satisfactory credit to determine eligibility. In this guide, we’ll walk you through the credit qualifications for a reverse mortgage, highlighting the criteria underwriters evaluate during the loan approval process.  Whether you’re planning to apply or want to understand the requirements, this article will provide the insights you need to navigate the process confidently. How Will... Read Full Article

How Reverse Mortgage Appraisal Laws & Appeals Work

    8 comments
One thing you should know if you are contemplating a reverse mortgage is that your home will have to undergo an appraisal by an FHA-approved appraiser. This will be a very extensive appraisal in which the appraiser should inspect your entire property, do a head and shoulders inspection of the attic (pop their head up and look around), measure the home, and be responsible for checking many items. The physical inspection is only a portion of the actual appraisal.  The appraiser will usually have done a lot of research on... Read Full Article

Reverse Mortgage After Death: What Heirs & Family Must Know.

    272 comments
It seems that one of the most popular questions we get is: What happens with my reverse mortgage and my home after death? When considering a reverse mortgage, an important question many borrowers and their heirs face is what happens to the reverse mortgage and the family home after the borrower's death.  This concern is particularly significant given that reverse mortgages are often viewed as the last loan a homeowner may need, designed to allow them to tap into their home equity while relieving them of monthly mortgage payments for... Read Full Article

How Bankruptcy Can Affect Your Reverse Mortgage Eligibility

    54 comments
We recently had several borrowers who had previously obtained a reverse mortgage call and asked us what the effect would be on those reverse mortgages if they had to begin a bankruptcy proceeding. While we are not attorneys and would always advise you to seek competent legal advice from an attorney in your state, we did want to contact an expert in the field of loan servicing for reverse mortgages and get some additional information that we could pass on. We contacted Ryan LaRose, Chief Operating Officer of CELINK, the nation's... Read Full Article

Top 10 Reverse Mortgage Counseling Agencies (Free & Online Availability)

    17 comments
The U.S. Department of Housing and Urban Development (HUD) mandates that homeowners exploring a Home Equity Conversion Mortgage (HECM) must receive essential counseling.  This counseling, provided by a HUD-approved HECM agency, covers the details and alternatives of reverse mortgages. To assist you, we are required to offer a list of approved reverse mortgage counseling agencies.  This list includes five nationwide companies as specified by HUD for HECM, alongside local agencies near you.  The number of nearby agencies varies; some borrowers may have several options, while others might need to travel... Read Full Article

Reverse Mortgage Life Expectancy Set Aside (LESA) Explained

    55 comments
A key development in the overhaul of HECM guidelines was the introduction of the LESA.  This requirement is a response to past challenges where borrowers, after receiving a lump-sum equity payment, struggled to meet essential obligations such as homeowners insurance, property taxes, and home maintenance to FHA standards, leading to defaults. The LESA is designed to ensure that property charges are managed effectively, safeguarding borrowers from the risk of default. The Security of a LESA with a Reverse Mortgage The Life Expectancy Set Aside (LESA) is revolutionizing how... Read Full Article
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