REVERSE MORTGAGE PRINCIPAL LIMIT

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

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

October 25, 2023     24 comments

UPDATE: The devastating fires in Los Angeles County prompted the Federal Housing Administration to publish FHA Info #2025-07 as a reminder to lenders about its guidance for servicing and originating FHA-insured mortgages in Presidentially Declared Major Disaster Areas (PDMDA). FHA provides HECM lenders an automatic 90-day extension from the date of the PDMDA foreclosure moratorium expiration date to commence or recommence a foreclosure action. HECMs that become due and payable for reasons other than the death of the last surviving borrower and eligible non-borrowing spouse are subject to a 90-day... 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

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. Latest Reverse Mortgage Spokesman, Tom... Read Full Article

How to Get Out of a Reverse Mortgage: Your Options Explained

October 10, 2023     43 comments

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’m sorry to hear you’re experiencing regrets.  Rest assured, reverse mortgages are highly regulated, and getting one without a lawyer’s involvement is legal as long as you receive the required counseling from... 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... Read Full Article

How to Buy Reverse Mortgage Property at a Foreclosure Auction

October 5, 2023     no comments

I am a Professional Real Estate Investor in Florida. I purchase a lot of properties at the foreclosure auction at the clerk of the courts. My questions are: 1. Is there a way to find out what is owed on a reverse mortgage on a property going to the auction? 2. Is there a formula to calculate the maximum borrowed amount? 3. Why is the deed recorded with the amount due 50 years later? Hello Jim, I can answer this the way I have been instructed by two... Read Full Article

Here’s How Long it Takes to Close on a Reverse Mortgage

September 26, 2023     34 comments

How long does a reverse mortgage take to close?  Can it be completed in a month or less? Reverse Mortgages can close in 30 days. Closing a reverse mortgage within 30 days is achievable, particularly when all the necessary elements align perfectly.  This ideal scenario includes the borrower completing their mandatory counseling, promptly returning the signed application, and experiencing no delays from service providers. However, predicting which loans will enjoy this smooth and swift process is challenging.  Unforeseen complications can arise at any stage.  Issues like unexpected liens... Read Full Article