Veterans: Unlock Your Equity

Reverse Mortgage Options for Veterans in 2025

February 25, 2024     17 comments

Question from our reader: "We have a reverse mortgage, but we were never told there was a reverse mortgage for veterans.  We have quite a bit of equity in our home.  Can we refinance our current reverse mortgage to a VA reverse mortgage?"  Understanding Reverse Mortgage Options for Veterans in 2025 When exploring reverse mortgage options, it’s crucial to understand the roles of key government agencies like the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA).  While both agencies are important in supporting homeowners, neither... Read Full Article

Why Reverse Mortgages Have 2 Notes & 2 Trust Deeds

February 19, 2024     59 comments

Borrowers often encounter confusion as they approach the crucial moment of signing their final documents for a reverse mortgage.  They are introduced to a First and Second Trust Deed Note and Two Deeds of Trust (or mortgage, depending on the state laws applicable to the property). Compounding the complexity, the amounts specified on the Note and Deed of Trust can be substantially higher than the sum the borrowers agreed to borrow.  This discrepancy has led some borrowers to hesitate or even refuse to sign the documents at closing, primarily because... Read Full Article

Reverse Mortgage Closing Costs & Fees Explained

February 18, 2024     6 comments

When considering a reverse mortgage, it's important to understand the various costs involved.  These expenses can differ significantly, not just between different lenders but also based on your home's location. To ensure you're getting the best possible deal, it's smart to shop around and compare lenders.  Among the costs, the origination fees (which cover the setup of your loan) and the lender's margin (determining your loan's interest rate) are particularly important to pay attention to. Interest rates are another important factor.  They represent the cost of borrowing money and will... Read Full Article

3 Advantages of Making Payments on a Reverse Mortgage

February 15, 2024     38 comments

A reverse mortgage lets you tap into your home equity without the burden of monthly payments.  But here’s a lesser-known perk: you can make payments on a reverse mortgage if it suits your goals—turning it into an interest-only loan or paying down the principal penalty-free. Why would you want to?  Let’s explore three key advantages and how this flexibility can work for you. Why Make Repayments on a Reverse Mortgage Loan? 1.  Easier to Qualify Compared to Conventional Loans Struggling to qualify for a traditional mortgage or refinance due... Read Full Article

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

February 5, 2024     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

February 5, 2024     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

February 3, 2024     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

January 31, 2024     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

January 31, 2024     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.

January 27, 2024     278 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