NON-FHA REVERSE MORTGAGES.

Return of Non-FHA Reverse Mortgages are Here!

November 2, 2023     29 comments

If you're in the market for a loan that can convert your home equity into cash flow or a line of credit in retirement, chances are you have explored the option of a reverse mortgage. But the reverse mortgage is not one-size-fits-all.  Many people don't know that there are several products to choose from, both under the Federal Housing Administration's popular Home Equity Conversion Mortgage (HECM) and private loan options. For the last several years, the number of reverse mortgage products on the market has been limited to the government-insured HECM and... Read Full Article

Lowest Cost Reverse Mortgage Options in 2024

October 26, 2023     6 comments

Are you searching for the lowest-cost reverse mortgage? A few short years ago, people were reading about how expensive reverse mortgages were, but that does not have to be the case currently.  Don't get me wrong; HUD still charges an Initial Mortgage Insurance Premium based on the home's value that can run as high as 2% for this one cost alone for the higher draws exceeding 60% of the available Principal Limit. Depending on the part of the country in which you live, some of the necessary costs like title... Read Full Article

What to Do If Your Home Suffers Fire Damage with a Reverse Mortgage

October 25, 2023     22 comments

UPDATE: FHA Extends Foreclosure Protections to Maui Borrowers The Federal Housing Administration extended its existing disaster-related foreclosure moratorium in Maui County, HI, through May 6, 2024, for borrowers with FHA-insured single-family mortgages, including HECMs.  This extension provides additional time for borrowers recovering from the catastrophic Maui wildfires to consult with mortgage servicers and housing counselors and access federal, state, and local housing resources without having to contend with the burden of an impending foreclosure action.  I live in California, have a reverse mortgage, and would like to know what would happen... Read Full Article

How Long Can You Leave Home with a Reverse Mortgage?

October 25, 2023     90 comments

How long could that homeowner be absent (e.g., on an extended vacation) before they would be considered not residing in the house?  Would they be allowed someone else living in the house to care for them? I will start with the second question as it is more straightforward to answer without reservations. The reverse mortgage does not prohibit a borrower from having anyone else live on the property, such as a family member or a live-in caregiver.  The borrower may undoubtedly bring in help to assist them in their living... Read Full Article

6 Reasons to Downsize (or Rightsize) with a Reverse Mortgage

October 19, 2023     no comments

As we grow older, our housing needs and preferences often change/evolve.  The family home that once fulfilled all our needs and still holds a lifetime of memories may begin to feel impractical or burdensome as our family sizes and physical needs change.  This is where downsizing, “rightsizing,” or even a move to a more advantageous location is often the best alternative for many homeowners. Downsizing refers to the process of moving from a larger residence to a smaller, more manageable one.  Rightsizing might not be less square footage but might... Read Full Article

5 Memorable Reverse Mortgage Spokesmen

October 16, 2023     8 comments

5 Memorable Reverse Mortgage Spokesmen Reverse mortgages have had many famous faces over the years.  From iconic television and film actors to one-time US presidential candidates, celebrities from all walks of life have espoused the many advantages a reverse mortgage can provide for older homeowners in their retirement years. While spokesmen have come and gone over the years, let’s take a look at some of the most memorable TV personalities to publicly endorse reverse mortgages for a national audience (starting with the newest spokesman to take the airwaves) 1.... Read Full Article

What’s Best? Reverse Mortgage Vs. Home Equity Line of Credit (HELOC)

October 16, 2023     19 comments

This article compares two popular home equity solutions: the traditional HELOC (Home Equity Line of Credit) and the HECM (Home Equity Conversion Mortgage).  While both options provide avenues for homeowners to access the value locked in their homes, they cater to different needs and present unique features. Our goal is to unravel these differences, providing clarity on how each option can align with various retirement strategies.  Whether you're considering supplementing your retirement income or seeking a financial cushion, understanding the nuances between a HELOC and a HECM is crucial for... Read Full Article

Exploring Exit Strategies: How to Terminate a Reverse Mortgage

October 10, 2023     35 comments

Margaret has sent the following question on our blog: I have a reverse mortgage, and I'm having problems with it.  Was it legal to get a reverse mortgage without my lawyer explaining the situation?  I never knew the pros and cons of a reverse mortgage.  I think it's a legal way to swindle homeowners out of their homes.  How can I get out of the reverse mortgage? I am sorry if you have regrets now.  You can get out of the reverse mortgage without penalty by refinancing into a traditional... Read Full Article

Top 4 Warning Signs a Reverse Mortgage May Be a Bad Idea

October 10, 2023     13 comments

A reverse mortgage can be a viable solution for the right homeowner—primarily seeking a way to age in place effectively. These loans are available to people age 62 or older who have built up a substantial amount of home equity and allow borrowers to generate additional cash flow in retirement.  However, a reverse mortgage can be the wrong decision in some circumstances. Here are some telltale signs a reverse mortgage may be a bad idea: You intend to move closer to family a few years later. If you want... Read Full Article

Reverse Mortgage Line of Credit & Growth Rate Explained

October 9, 2023     118 comments

Reverse Mortgage Line of Credit In 2023, the reverse mortgage line of credit continues to be the most popular option for homeowners to access their funds.  According to an article by AARP, borrowers recognized this choice about 66% of the time when obtaining a reverse mortgage as being the right choice for them. The credit line option allows borrowers a great deal of freedom when planning their finances.  Homeowners like the fact that they can take as much as they want when the loan originally closes up to the maximum... Read Full Article