Will Your Credit Qualify for a Reverse Mortgage?

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

January 31, 2024     64 comments

Updated: 9/17/2025 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. ... 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 appraisal will be very extensive, involving an inspection of your entire property, a head and shoulders inspection of the attic (where the appraiser will pop their head up and look around), measurement of the home, and a review of numerous 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     284 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

January 25, 2024     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

Reverse Mortgage Life Expectancy Set Aside (LESA) Explained

January 22, 2024     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

Is a Reverse Mortgage Right for You? 3 Key Considerations

January 22, 2024     8 comments

Like many of our readers who are navigating retirement, you might wonder if a reverse mortgage is right for you.  You've likely seen your equity grow substantially, possibly even owning your home outright - a common scenario for many baby boomers. Your home, often your largest asset, may lead you to consider the option of a reverse mortgage.  At All Reverse Mortgage, we understand the importance of this decision.  This article integrates our insights with 3 important questions, helping you evaluate whether a reverse mortgage fits your financial future. We'll... Read Full Article

5 Ways To Lose Your Home With a Reverse Mortgage

January 22, 2024     31 comments

With a Federal Housing Administration-insured Home Equity Conversion Mortgage (HECM), the borrower retains ownership of the property while continuing to live there throughout the loan.  They are not required to make monthly mortgage payments during that time. Reverse mortgages are often misunderstood, and a common misperception is the idea that in a reverse mortgage, "the bank takes the home." On the contrary, if the borrower meets the loan terms, that borrower maintains ownership of the home throughout the entire course of the loan. The loan balance grows over time, and... Read Full Article

Reverse Mortgage Amortization Schedule Explained

January 20, 2024     6 comments

Before you decide if a reverse mortgage fits your needs, it's smart to look at how the loan could grow and how your home equity might change over time.  One of the best tools for this is the reverse mortgage amortization schedule. This schedule shows a year-by-year estimate of your loan balance.  This interest will be added, any available credit line if you choose an adjustable-rate option, and your projected home value based on an assumed appreciation rate.  Reviewing it early helps you see how different choices, such as taking... Read Full Article

Reverse Mortgage Principal Limit Explained

January 15, 2024     16 comments

I am 87 and received a HECM Loan.  The maximum claim is $250,000.  Due to age and other factors, the credit limit was due to reach the maximum claim.  Withdrawals were denied when the balance was around $225,000, and no withdrawals have been allowed since the servicer has been getting compound interest each month.  HUD has been accessing fees and premiums.  Maybe I'm delusional, but something doesn't add up here.  Am I wrong? Understanding the Maximum Claim Amount The Maximum Claim is used to determine your reverse mortgage benefits... Read Full Article

Lowest Cost Reverse Mortgage Options in 2025

October 26, 2023     8 comments

What is 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, which can run as high as 2% for this cost 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 insurance and state and local fees... Read Full Article