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The American Association of Retired Persons (AARP) is a large, independent, nonprofit organization dedicated to helping people ages 50-plus achieve financial independence. While the organization, which serves 37 million older Americans and counting, doesn't offer reverse mortgage products directly, it does weigh in on them in some significant ways. Here's where AARP comes into play for retirees who may be looking into getting a reverse mortgage as a means to age in place. What does AARP think of reverse mortgages? AARP has supported reverse mortgage products to help... Read Full Article
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Why would someone use a reverse mortgage while rates are up?! Due to inflation, interest rates have been climbing since early this year and borrowers receive less money on the loan at today’s rates than they did even a year ago. However, it may still make sense for seniors to consider a reverse mortgage over moving, and here’s why. Senior equity has risen to over 11 trillion dollars in the US. In many areas the market is getting much softer with the higher rates. Houses are beginning to take longer to sell and... Read Full Article
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Servicing is a critical component of the reverse mortgage. It’s also one of the most misunderstood functions by borrowers. A reverse mortgage goes through several different cycles throughout the life of the loan. The loan begins in the origination stage, moves to close, and then enters the servicing phase, where the reverse mortgage will remain throughout the life of the loan - but that doesn't necessarily mean that it will stay with the same servicer throughout the life of the loan! Reverse mortgage servicing is important because this is the... Read Full Article
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My mom procured a reverse mortgage when property values were high. She can no longer live alone in the home and has vacated it; we cannot sell it because the home has devalued in accordance with the failed economy. The family is attempting to process, through an attorney, a Deed in Lieu of Foreclosure, but the loan has been transferred to 3 different loan companies since mom vacated the property 5 months ago, and they have ignored the attorney's letters and continue to send mailings telling my mom that they... Read Full Article
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Many homeowners understand that when they qualify for a reverse mortgage, they're eligible for a loan amount that's a percentage of their home's value or the HUD Lending limit, whichever is lower. This amount, commonly known as the 'Principal Limit,' is a key factor in reverse mortgages. Yet, the 'Expected Rate' is a lesser-known aspect that significantly impacts the available funds from a reverse mortgage. Understanding how this rate influences the loan proceeds is crucial for consumers considering a reverse mortgage. Reverse Mortgage Expected Rate: Impact and... Read Full Article
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BREAKING: 2023 Reverse Mortgage Limits Reach All-Time High $1,089,300! HUD just announced their high-cost limits for Alaska and Hawaii. Based on the fact that the Home Equity Conversion Mortgage (HECM) limits normally follow these States, we can safely guess that the HUD HECM limit for 2022 will also jump to $970,800 for all new applicants as of January 1, 2022 when HUD announces those changes in just a few weeks. This is a very large increase for a single year, especially given the increases the program has seen over... Read Full Article
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If you're the owner of a manufactured home and you're wondering about your eligibility for a reverse mortgage, here's the short answer: you may be eligible. Now for the longer answer. As with any prospective borrower, you must be 62 or older, legally own the home, be your primary residence, and be eligible for participation in Federal Housing Administration programs. And if you have a manufactured home, yes, you can get a reverse mortgage—as long as it was built after June 15, 1976. Why is this particular date so important? ... Read Full Article
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I have the home in a family trust. I am unmarried but have lived with my “wife” for years. She inherits the home by last will. Do we qualify for a reverse mortgage? The short answer is yes. You can have your home in a family trust with a reverse mortgage. Firstly, as a lender, we only get so much information. Then, we rely on the title and affidavits we receive when originating the loan. For example, we would do a title search and see that the current title... Read Full Article
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Who pays property taxes and insurance on a reverse mortgage? The normal way is for the reverse mortgage homeowner to pay their own taxes and insurance EXCEPT if you do not meet the program's residual income or credit requirements. And then, instead of an automatic declination, if your income or credit does not meet the requirements like a typical loan, there is a second opportunity with a Life Expectancy Set Aside (LESA) wherein the funds are set aside to pay the taxes and insurance from the loan proceeds, and... Read Full Article
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This message was sent to our blog: The reverse mortgage is a scam! I am a banker and I see every day deceived elderly customers who get fooled by these "reverse mortgages"; they end up losing everything and put their heirs in jeopardy. - Tim I've been a mortgage banker for over 45 years. During that time, I have worked for many big banks, mortgage companies, and insurance companies with many different lending products. There were many lending products that I would classify as less than advantageous for the... Read Full Article
