Hi Scott,A reverse mortgage could definitely be an option worth considering for your parents, but whether it's the best choice depends on their goals and circumstances. Let me break it down:Traditional Loan:If your parents want to make payments and pay down the balance over time, a conventional loan might work - if they could qualify. The upside is lower upfront costs, but the downside is they'd have to make monthly payments no matter what. Missing payments could hurt their credit, and if their financial situation changes, they won't have many options to adjust.Reverse Mortgage:This might be a better fit, especially since it sounds like they're having trouble qualifying for a traditional loan. With a reverse mortgage:They can access the funds they need without having to make monthly payments (as long as they live in the home, maintain it, and keep taxes/insurance current).They'd have a line of credit available for future needs, but they can also make payments if they want to keep the balance from growing.No penalties if they decide to pay off the loan or sell the home down the road.It's worth noting that a reverse mortgage has higher upfront costs, so if your parents plan to sell the home in a year or two, it's probably not the best option. But if they plan to stay long-term, it could provide financial flexibility and peace of mind.Ultimately, the choice depends on their priorities - whether that's maintaining financial freedom, staying in their home, or passing down as much equity as possible. A reverse mortgage gives them options, but it's always a good idea to run the numbers and make sure it aligns with their goals.If you want more details or a personalized breakdown, feel free to ask!

Hello Ron,If he doesn't have an immediate need for all the money, I wouldn't recommend a lump sum draw! He's correct that he would accrue interest on borrowed funds unnecessarily if he doesn't need them right away.He has other options that might work well for him. Without knowing his exact circumstances, it sounds like he could be an excellent candidate for the same program my mother chose. She opted for a modified term payment loan. She considered both the modified term and modified tenure payments but ultimately chose the term, and I'll tell you why.She didn't want a lump sum of all the money available to her. She wanted some cash available for home improvements, so anything we did had to include a line of credit. She chose the modified term payment because she didn't want the entire payment provided by the tenure option. With the term option, she could choose her payment amount. The tenure payment is calculated by the HUD calculator based on your age, interest rates, property value, or HUD maximum claim amount, and the anticipated number of payments based on your age.Your uncle can have a payment sent to him every month or have all available funds remain in a line of credit. He would need to request funds each time he wanted a draw, and they would make an ACH deposit into his account automatically. He can make draws monthly, annually, or only when certain payments (like taxes and insurance) are due, or if the home needs repairs. The choice is his. The best thing to do would be to visit our website at check our calculator to see what options are available to him. He can check the different options without needing to supply a social security number or any personal information other than age and property address, and we will provide his options.We use the property information to determine an approximate value if we can find recent sales of similar properties in his area (the only thing that can determine the actual value is an appraisal from a HUD-approved appraiser). The borrower's age is required to let us determine the HUD calculations. If you feel the address is too much information, just give us the zip code so we can ensure the fees are accurate for your area, provide an estimated value, and give us your birth month and year to ensure your benefits are accurate.

Hello Sylvia, Unless your husband is a lot younger than you, there would be no reason to wait. If he is younger, you will receive less benefit from the loan, but if he is the same age or older, you will receive the same amount, and there is no downside to getting the loan, even if he predeceases you later.

Hello Dee, I'm sorry you feel that way but without realizing it, you only echo what we have been saying. This loan is not for everyone. If your home is in such disrepair that you need to make heavy repairs just to be able to close the loan and then it doesn't give you sufficient funds to enjoy your retirement as you would like or need, then it isn't the loan for you. Contrary to your feelings, lenders and HUD do not want your house but they also do not want to be left with a property that is not marketable requiring massive repairs to liquidate should your heirs not want the home at the conclusion. Therefore, HUD does have minimum requirements the property must meet to be eligible for the program. So, if this is the case for you and you are still not able to be comfortable with the home, the repairs, and your finances after the loan closes, we would advise against you getting the loan. Other people may have the income to live comfortably but just not the resources to make necessary repairs or updates who would be very pleased to be able to live for the rest of their lives in their home comfortably but that is for each borrower to decide based on their own circumstances. In your case, you may be better off selling and using your equity to fund your retirement instead. People need to weigh the cost of living elsewhere (there will be a mortgage payment if you buy or if you take out another type of loan) or rent if you are a tenant somewhere. They also need to factor in the attachment they have for the home in which they currently live and the cost to sell and move if that is what they want to do. And you mentioned that you can make a payment if you choose on a reverse mortgage which is the truth if you desire and that would preserve your equity if that were your goal, but the whole point is you are not required to make any payments with a reverse mortgage. Borrowers who take out traditional financing MUST pay that monthly payment every single month or they risk credit problems or possible foreclosure. And then after a typical forward mortgage, you wind up paying a big chunk of your home's value in interest over that time anyway. The difference is that you paid it in monthly payments so it wasn't one big payment at the end. Finally, you could not be more wrong about lenders "low-balling" appraisals. Under state and federal laws as well as HUD rules, lenders cannot even mention a value to an appraiser, or the appraiser will cease the assignment immediately and report the individual and the lender. In fact, the laws and rules were enacted around 2009 for both forward loans and reverse mortgages because HUD, Government Sponsored Entities like FNMA and FHLMC and regulators felt that lenders were putting too much pressure on appraisers to increase values, not suppress them. Any violation is considered a violation of state licensing laws and lenders and individuals can lose their licenses and their ability to originate loans. The Appraisal Institute has a written explanation of Appraiser Independence Laws online at https://www.appraisalinstitute.org/assets/1/7/appraiserindependencelaws.pdf. The lender can help the borrower submit a rebuttal if the borrower believes the value is too low by giving the appraiser additional information or corrections to mistakes in the appraiser's report (if there is any), but they cannot suggest a value even if errors are discovered. It's still up to the independent appraiser to determine the value, not the lender. Any attempt to influence the value is a reportable offense. What you fail to understand is that the reverse mortgages are HUD insured against loss. Lenders are pleased when values are supported at the homeowner's expectations because the transaction goes much more smoothly, and the lender doesn't need to have the very uncomfortable conversation with the borrower that the property did not appraise for the value the borrower was expecting. No originator would intentionally try to make the transaction harder or even risk cancellation to try to low-ball a value when the higher value is insured and helps the borrower and the lender close the loan. As I started by saying, reverse mortgages are not for everyone. We readily admit that and if the loan does not answer your needs and meet your goals, we would agree that it is the wrong loan for you. However, your reasoning is off and to simply make a blanket statement that it is a bad idea based on that faulty information or based on circumstances that are not present with all cases, is just as irresponsible as someone who says that all borrowers over the age of 62 should get a reverse mortgage.