There exists a common misconception that a reverse mortgage can be used to fix a home, with no further clarification. It appears to stem from various marketing efforts that you see in print or on television, that make it seem like a simple process. The general perception is that we can close a loan for a customer with a home in disrepair, and provide the cash at closing needed to do the repairs. Unfortunately, that is far from the case in many instances.
Are you over sixty two years old and looking for a way to split your home equity as part of a divorce? Are you opposed to the idea of selling your home?
Using a reverse mortgage to make the fifty percent equity payment can be a low risk way of taking care of the spouse that will no longer occupy the property. It can also be an alternate solution for those that would have a significant tax hit for liquidating investments to make the payment.
Are you a condo owner that is waiting on your complex approval and needing to do something in the short term? What about a homeowner that is going to open a home equity line of credit (HELOC) before doing a reverse mortgage in a few months?
The answer to this question is “Yes”. HUD/FHA allow you to refinance a reverse mortgage if there is a net tangible benefit to doing so. Usually this stems from one of the following:
Are you under the impression that you will easily be able to make all financial decisions for your spouse should he/she become incapacitated? Marriage alone is often not enough. In our small section of the mortgage industry, we often find that people are unaware of the requirement to have written legal authority. Since we are speaking with clients over the age of sixty two years old, it is common to hear of one spouse having early signs of Alzheimer’s or having a stroke that leaves them incapacitated. It is never too early to be prepared for this difficult situation. Continue reading
The Department of Housing and Urban Development (HUD) decided to make changes to their non-borrowing spouse rules, effective for loans written on or after August 4th, 2014. There are several active lawsuits against HUD as a result of their old non-borrowing spouse rules, all due to the surviving spouse being told they must repay the loan or face foreclosure. There was always too much risk to the non-borrowing spouse under the old rules, so these changes are welcomed by everyone that follows the industry. Continue reading
In the simplest terms, a jumbo reverse mortgage is a loan initiated by a lender that makes it possible for owners of high value homes to tap into larger portions of their home equity than they wouldn’t be able to with a standard reverse mortgage. However, there are some important distinctions to draw Continue reading
After first hearing about a reverse mortgage on TV, from print media, or through word-of-mouth, most people turn to the internet for more information. A typical Google search will turn up a significant number of paid advertisers and a list of natural results. Continue reading
One of the first steps in determining whether you should take out a reverse mortgage is by taking a look at how your family views your home equity. Continue reading
A reverse mortgage is a great idea for seniors who might be facing a financial shortfall in retirement. Continue reading