Refinancing a loan, including one involving a reverse mortgage, follows a structured process. To proceed, you must hold title to the property, as lenders require ownership before approving a loan in your name. Once ownership is secured, the next steps involve applying for a new traditional mortgage. Upon approval and closing, the settlement agent will use the new loan funds to pay off the reverse mortgage and any other existing liens.

Purchasing the Property from an Estate

If you are acquiring the property from your mother’s estate and there are other beneficiaries, the estate must sell the home to you. This process mirrors a standard real estate transaction, where:

1. The estate’s authorized representative agrees to sell the property.
2. You secure financing with a lender based on the sale agreement.
3. The loan proceeds are used to pay off the reverse mortgage and distribute any remaining funds as required by the estate.

Loan Qualification and Down Payment Considerations

• If you are refinancing a property you already own, you may not need a down payment.
• If you are purchasing the home from the estate, the lender may require a minimum down payment depending on the loan terms.

Since lender requirements can vary, it’s best to consult a forward lender early in the process to understand their specific qualification criteria. They can advise on:

• Title adjustments needed before loan approval
• Down payment and closing cost requirements
• Steps to ensure a smooth loan transaction

For more information on managing a reverse mortgage after the borrower’s death, including repayment options and timelines, you may find it helpful to explore additional resources. Let me know if you have any further questions!

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