Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Reverse mortgage question
Old 05-02-2014, 06:01 PM   #1
Dryer sheet wannabe
Join Date: Jan 2011
Location: Columbia, SC
Posts: 24
Reverse mortgage question

Anyone know of a company that will do a reverse mortgage on a house that the owner does not live in?

donothing is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-02-2014, 06:27 PM   #2
Thinks s/he gets paid by the post
Htown Harry's Avatar
Join Date: May 2007
Posts: 1,508
I'd rate the chances of company writing a reverse mortgage outside of the FHA guarantees as slim. Inside the FHA rules, you must occupy the property as your primary residence.
About Reverse Mortgages for Seniors (HECM) - HUD
Borrower Requirements
You must:
  • Be 62 years of age or older
  • Own the property outright or paid-down a considerable amount
  • Occupy the property as your principal residence
  • Not be delinquent on any federal debt
  • Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and Homeowner Association fees, etc.
  • Participate in a consumer information session given by a HUD- approved HECM counselor
HELOC's or HEL's are the only alternative I know of.

No doubt a continuous prosperity, though spendthrift, is preferable to an economy thriftily moral, though lean. Nevertheless, that prosperity would seem more soundly shored if, by a saving grace, more of us had the grace to save.

Life Magazine editorial, 1956
Htown Harry is offline   Reply With Quote
Old 08-18-2014, 10:16 PM   #3
Thinks s/he gets paid by the post
imoldernu's Avatar
Join Date: Jul 2012
Location: Illinois and Florida
Posts: 3,935
Bumping this, because it could be appropriate to consider a reverse mortgage in some instances. After filling out this cost estimate, I found that the actual cost, including all fees could be a good alternative to selling the homestead.

The lower age eligibility limit is 62, and the total expenses would be higher at the younger age, but, depending on the financial condition of the person taking out the loan, it could easily be a good alternative for older persons who need cash for whatever reason.. nursing home for spouse, urgent repairs, or to keep safe other assets that would be more important in the longer term. If not for self, then for parents or relatives.

There are some downsides, but government guarantees could be important in the case of lowering home prices, and peace of mind for an older person can be a valuable commodity. The idea of having to downsize and move at age 80+ is daunting.

If you try the calculator... (an easy fill in the blanks).. check the difference between age 62, and 75 (for instance) as to the total cost differential.
One of the "Lucky Few"
imoldernu is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Reverse mortgage market is changing Htown Harry FIRE and Money 9 06-20-2011 01:19 PM
Reverse mortgage swodo FIRE and Money 2 08-19-2010 02:29 PM
"Putting Your Mortgage in Reverse" Nords FIRE and Money 14 12-07-2008 11:17 AM


All times are GMT -6. The time now is 07:24 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.