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Reverse mortgages - Part 1 The basics

By Sandy McKee

Mortgage and Lending with Sunstreet Mortgage

September 09, 2009 07:29 AM

There are so many questions that arise about reverse mortgages. The main questions are related to whether or not a reverse mortgage makes good sense and if they are safe. Seniors and their families need help in getting enough information to determine if a reverse mortgage is the right loan product to suit their needs. Many times I will advise a senior not to do a reverse mortgage if it is not in their best interest. I am going to address the most common aspects and concerns of reverse mortgages over the next few days. Please feel free to ask questions below or call me directly.

Eligibility requirements for reverse mortgages?

Borrower must be at least 62 years of age
Property must be primary residence
Home must meet FHA property standards
Maintain home with necessary repairs, property taxes and insurance
No income or employment requirements
No credit requirements

Most seniors choose to do a reverse mortgage to unlock the equity that they have in their home. Most reverse mortgages today are known at the HECM, or Home Equity Conversion Mortgage. This is an FHA loan which is guaranteed by the Federal Government. Reverse mortgages can actually be used today to buy a home!

Loan amount based on:

Age of the youngest borrower
Interest rate on program choice
Appraised value or FHA county loan limit (varies depending on where you live)

Please visit me over the next few days to get more information about revese mortgages including: Loan payment options, costs, counseling, objections and most often asked questions.

Thank you for visiting!

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Susan Neal

RE/MAX Gold, Fair Oaks - Fair Oaks, CA

Fair Oaks CA & Sacramento Area Real Estate Broker

Hi Sandy - I have recommended reverse mortgages to several people and everyone I know with one loves it. I am about to close escrow on a transaction where my client is buying the home with a purchase reverse mortgage. It is in a Del Webb active adult community and this mortgage is a perfect fit for purchases in a community where you have to be at least 55 to buy (and most who are shopping there are 62+). For all my open houses, I had brochures for lenders who do the purchase reverse loans.

Sep 09, 2009 01:44 PM

Sandy McKee

Sunstreet Mortgage - Tucson, AZ

Hi Susan,

Thank you for commenting. The popularity of reverse mortgages is growing every year as people become more aware of the different programs as well as learning that they safe and are a good fit for the right situation. It is great that you have found a niche product in the Dell Webb community! Take care, Sandy

Sep 10, 2009 05:15 AM

Michael Rohde

Sunstreet Mortgage LLC. Licensed Mortgage Professional - Tucson, AZ

Sandy, That's a clear and concise post. Great points and basics to get good information out on a much misunderstood program. Keep em comming.

Sep 10, 2009 06:25 AM

Patrick Randles

Nova Home Loans - Tucson, AZ

Sandy,

Do you do such loans or refer them to someone?

Patrick

Sep 10, 2009 08:34 AM

Hi Patrick,

I have been doing these for almost 3 years. Thanks, Sandy

Sep 10, 2009 08:41 AM

Chris Ann Cleland

Long and Foster Real Estate - Gainesville, VA

Associate Broker, Bristow, VA

Sandy: This is a type of loan that really doesn't get talked about enough. Nice to see you have done a two-parter on them.

Sep 13, 2009 04:47 AM

Hi Chris,

Thank you for commenting. I hope to spread the word that given the right circumstances, this can be a great loan!

Sep 13, 2009 05:18 AM

Anonymous

Nancy Harris

Does Del Webb Pulte Homes allow Reverse to Purchase. I had a purchase agreement cancelled after I was told that the RP was OK. Am in NC

Mar 28, 2015 10:45 PM

Reverse mortgages - Part 1 The basics

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Sandy McKee

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