Archive | Q & A

Can the property be held in a trust?

Trusts are normally allowed in a reverse mortgage. The trust typically must be revocable to qualify.  In some cases, the lender’s underwriting group may determine a particular trust is not acceptable.  An unacceptable trust can usually be rewritten to comply and then be accepted, or the home may be removed from the trust to complete […]

What is a HECM Saver Reverse Mortgage?

In October 2010 the Federal Housing Administration launched a new reverse mortgage called the HECM saver. In exchange for the borrowing taking a  lower loan amount, the HECM Saver charges drastically lower up front fees. HECM is short for Home Equity Conversation Mortgage, the reverse mortgage program insured by the FHA. The vast majority of […]

How do I qualify for a reverse mortgage?

There are two qualification for a reverse mortgage, your age and your home. In order to qualify for a reverse mortgage you must be 62 years of age or older. In the case of a married couple the youngest spouse must be 62 years old. No other credit or income requirements are reviewed. No minimum […]

How much are the closing costs on a Reverse Mortgage?

There is an old saying that there is no free lunch and that is particularly true in mortgage and real estate transactions.  The closing costs for a reverse mortgages are similar to those for a forward mortgage, including escrow, title insurance, appraisal, up front mortgage insurance and origination fees. In general these fees are not […]