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 […]
Archive | Q & A
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 […]
Do I need to own my home free and clear to get a reverse mortgage?
I enjoy answering your questions, please call or email me for a personal, timely and accurate response. You do not need to own your home free and clear to get a reverse mortgage. The proceeds of the reverse mortgage can be used for any purpose, including paying off the current mortgage and any other liens […]
Why should I get a reverse mortgage instead of a home equity loan?
There are a number reasons why a reverse mortgage can be a better choice than a normal home equity loan for homeowners 62 years or older. It is an individual decision, but some of the common reasons a reverse mortgage makes more sense are: Never having to make a mortgage payment. Any payments are optional. […]
Does a condo qualify for a reverse mortgage?
A condo in a HUD approved homeowners association (like Rossmoor) is qualified for reverse mortgage. Co-operatives are not eligible for a reverse mortgage according to HUD. From time to time there is a proposal to add Co-ops to the eligibility but as of today that is not the case. Single family homes both with and […]
Are there restrictions on how I use the income from a Reverse Mortgage?
Other than having to pay off any existing liens on your property (a prior mortgage, home equity loan, tax lien, etc.), there are virtually no restrictions on how a reverse mortgage may be used. A few of the more common uses we’ve encountered include; cash for daily living, pay for medical expense, consolidate debts and […]
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 do I receive payments from a reverse mortgage? Can I make changes later?
There are three separate ways to receive the cash from a reverse mortgage. 1.) A single check at close 2.) A monthly income or 3.) An equity line of Credit. And you can take a combination of these three based on your specific situation. We recently had a client who took out a lump sum […]
When I get a reverse mortgage, who owns my home?
Bottom line, you continue to own your home when you have a reverse mortgage. Just the same as if you had a traditional forward mortgage. You remain on title and the owner of the home, until the home is sold or passes to your heirs. While you remain the owner of the home, you continue […]
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 […]