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Q. What is a Purchase Reverse Mortgage? A Purchase Reverse Mortgage allows seniors aged 62 or older to buy a new primary residence using the loan proceeds from a Home Equity Conversion Mortgage (HECM). Q. What is the purpose of the program? The purpose of the Purchase Reverse Mortgage program is to allow seniors to buy a new primary residence and secure a reverse mortgage in a single transaction, thus removing the need for a second closing. Additionally, the program aims to assist senior homeowners in relocating to different areas... Read Full Article
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Unmasking Reverse Mortgage Myths: Separating Fact from Fiction Reverse mortgages are often misunderstood, clouded by myths discouraging homeowners from exploring their benefits. These misconceptions create unnecessary doubts for those who might find this financial tool a valuable asset in retirement. In this guide, we’ll address six of the most common myths about reverse mortgages, providing clear, factual insights to help you make informed decisions. You’ll learn how reverse mortgages work, who can benefit most, and why they’re not the financial pitfalls some claim them to be. Whether you’re considering a... Read Full Article
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Inheriting a property is a significant responsibility, especially when it comes with a reverse mortgage attached. If you find yourself as the heir to a borrower who has passed away, you may feel overwhelmed by the financial and legal complexities that follow. This article will guide you through the steps we recommend following to navigate this situation. Whether you're considering paying off the loan, selling the property, or taking on other options, our aim is to provide you with a comprehensive understanding of your options and the next steps involved.... Read Full Article
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Getting a home appraisal is an integral part of the reverse mortgage process. Here's what you need to know to manage your expectations about getting your home appraised as part of this loan to help you age in place. It's a multi-step process, but you can prepare in advance to make it as smooth as possible. Typically, there will be three steps: The inspection. During the inspection, the appraiser will walk through the home with you and take any necessary photos as part of the research process. They will focus... Read Full Article
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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
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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
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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
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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
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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
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You've decided to pursue a reverse mortgage, and now you're meeting with a loan officer for the first time. Although you may understand the basics of a reverse mortgage, it's a good idea to bring certain questions to your first meeting to clarify any details that could potentially catch you off guard in the future. 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 session is an important step in the process... Read Full Article
