Current Reverse Mortgage Rates: Today&#;s Rates, APR | ARLO&#;

Accurate as of 08/06/

Accurate as of 08/06/

You can find more information on our web, so please take a look.

 

HECM Reverse Mortgage Rates

Fixed RateAdjustable Rate Lending Limit 7.560% (9.080% APR)6.375% (1.750 Margin)$1,149,825 7.680% (9.217% APR)6.625% (2.000 Margin)$1,149,825 7.810% (9.365% APR)6.875% (2.250 Margin)$1,149,825 7.930% (9.502% APR)7.125% (2.500 Margin)$1,149,825
Adjustable-Rate Payment Options: Lump Sum, Line of Credit, Term, Tenure, Combination.
APR Illustration: 7.560% + .50% Monthly MIP = 8.060% in total interest charges. Scenario is for a 70 year old borrower in California with a $250,000 loan amount and includes .50% Mortgage Insurance, standard 3rd party closing costs.

 

HECM Purchase Reverse Mortgage Rates

Fixed RateAdjustable Rate Lending Limit 7.560% (9.080% APR)6.375% (1.750 Margin)$1,149,825 7.680% (9.217% APR)6.625% (2.000 Margin)$1,149,825 7.810% (9.365% APR)6.875% (2.250 Margin)$1,149,825 7.930% (9.502% APR)7.125% (2.500 Margin)$1,149,825
APR Illustration: 7.560% + .50% Monthly MIP = 8.060% in total interest charges. Scenario is for a 70 year old borrower in California with a $250,000 loan amount and includes .50% Mortgage Insurance, standard 3rd party closing costs.

Adjustable-Rate Payment Options: HECM for Purchase Transactions (H4P), Line of Credit, Term, Tenure, Combination.
Index: 12-Mo. CMT
Lifetime Cap: 5% Over Start Rate

 

Jumbo Reverse Mortgage Rates

Fixed RateAdjustable RateLending Limit 8.990% (9.075% APR)11.275% (6.625 Margin)$4,000,000 9.625% (10.146% APR)11.400% (6.750 Margin)$4,000,000 9.875% (10.407% APR)11.525% (6.875 Margin)$4,000,000
Jumbo APR Illustration: Scenario is for a 70 year old borrower in California with a $1,000,000 loan amount, includes standard 3rd party closing costs.
Adjustable-Rate Payment Options: Lump Sum or Line of Credit
Index: 12-Mo. CMT
Lifetime Cap: 5% Over Start Rate

 

 

TIP #1: If you are shopping for the best reverse mortgage interest rate, be sure first to compare the program&#;s payment options, which are explained in detail below.

Many prospects first gravitate to a fixed rate but find the mandatory lump sum unattractive compared to the flexibility of a line of credit option or monthly payment plans featured on variable interest rate options.

 

 

How Interest Rates Affect Your Available Loan

You may have heard of recent changes to the Federal Housing Administration-insured reverse mortgage program, the Home Equity Conversion Mortgage (HECM) program.  The agency announced in late August that it would be making several changes to HECM loans that will impact borrowers- both in terms of how much they will pay to get a reverse mortgage and how much they&#;ll be able to borrow.

One of the significant changes is that the amount you can borrow with a HECM loan depends largely on current interest rates.  The amount of home equity you can borrow is tied directly to the interest rate available when you get your reverse mortgage.

Just like in the &#;forward&#; mortgage market, your interest rate determines the interest you&#;ll pay.  However, the current interest rate determines how much you can borrow in the reverse mortgage market.  All HECM reverse mortgages use a specific table the Department of Housing and Urban Development provides to determine loan amounts for borrowers.  This amount is called the &#;principal limit.&#;

The principal limit depends mainly on the borrower&#;s age, home value, and current interest rates.  Every loan amount will be different from home to the borrower to borrower.

The percentage of home equity that borrowers can access will range from 37.6-72.5%.  Older borrowers can access a greater percentage of home equity than their younger counterparts.

 

 

HECM Reverse Mortgage Benefits by Age

Age of BorrowerPrincipal Limit FactorCurrent Lending Limit .6%$1,149,825 .7%$1,149,825 .3%$1,149,825 .1%$1,149,825 .5%$1,149,825 .4%$1,149,825 .1%$1,149,825

 

 

TIP #2: Each Monday afternoon, the expected rate updates are taken from the daily treasury yield curve and create an adjustment to all HECM lenders&#; software and their principal limit factors.

When you compare lenders&#; rates & origination fees, be sure to receive written quotes within the same calendar week, preferably Tuesday-Friday. This will give you the most accurate side-by-side interest rate comparison.

 

 

Types of Reverse Mortgage Payment Options

Reverse mortgage Fixed Rates

• Payment options:

   Single lump sum disbursement.

• Interest rate:

  Fixed rate for the life of the loan.  The interest rate remains the same for the life of the loan but requires a single lump sum disbursement at the time of closing.

If you are using the reverse mortgage for purchase or are already taking most of your available funds at closing to pay off another mortgage balance, you might find this plan the most appealing.

 

 

Reverse mortgage Adjustable-rates, or ARMs:

• Payment options:

  Single lump sum disbursement, line of credit, term, tenure.

• Interest rate:

  Annual adjustable with a periodic change of up to 2% with a lifetime cap rate

Generally, interest rates are slightly lower than fixed-rate mortgages but offer greater flexibility with additional payment plans such as the open line of credit, term, and tenure plans.

The adjustable rate plans come as either monthly or annual adjustable.

 

 

Choosing Fixed-Rate Vs. Adjustable

You can choose a fixed rate or an adjustable rate, and fixed rates sound great, but they are called a &#;closed-end instrument&#; and require the borrower to take the entire loan at the beginning of the transaction.  For borrowers who are paying off an existing mortgage and need all their funds to pay off the current loan, this is no problem.

For a borrower with no current lien on their property or a very small one, this would mean they would be forced to take the entire eligible mortgage amount on the day the loan funds.  This might give a borrower $200,000, $300,000, or more in cash from the very first day that they do not need at the time and on which they are accruing interest.

A borrower planning on using only a portion of their funds monthly need not pay interest on the entire amount from the very start, eroding the equity unnecessarily fast.  This can also have an adverse effect on some seniors with needs-based programs.  (Medicaid: Seniors on Medicaid and some other needs-based programs would have their eligibility impacted by the sudden addition of liquid assets.)

An adjustable-rate will accrue interest at a much lower rate at today&#;s rates but has a 5% lifetime cap and can go much higher if rates continue to rise.

Also, See: Which is Best?  Fixed vs. Adjustable Rate Reverse Mortgages

 

 

Adjustable Rates Offer Greater Flexibility 

The adjustable-rate programs do allow you more flexibility in how you can receive your funds.  The first option would be a cash lump sum.  This is not advised on the adjustable product, as a cash lump sum request is usually associated with fixed interest rates.  However, it is available.

The second option would be a line of credit.  The HECM line of credit differs from the &#;Home Equity Lines of Credit&#; or (HELOC) lines of credit you can get at your local bank.  The reverse mortgage line of credit funds grows based on the unused portion of your line, and those funds cannot be frozen or lowered arbitrarily as the banks can and have done recently on the HELOCs.

This means that the line of credit grows based on the interest rate applied to the unused portion of your line.  In other words, using that same $100,000 line we had above, if you used $45,000 to pay off an existing lien and for your closing costs, you would have $55,000 left on your line.  If you did not use these funds, your line would grow by the same rate as your interest plus your MIP renewal rate on the loan.

If your interest rate was currently 5% and your MIP renewal was .5%, your line would grow at 5.5%.  That would be roughly $3,025 in the first year (with compounding, it would be higher).  The credit line growth is not interest anyone is paying you.  It is a line of credit increase, and if you never use the money, you never accrue any interest owing on the growth.

After several years of growth, some borrowers&#; lines grow significantly because their lines started relatively high and don&#;t begin drawing on the lines until later in the loan.

The third option would be a payment plan.

With a reverse mortgage, borrowers also have the option to take the net proceeds in the form of monthly payments that are disbursed every month.  These funds can be allocated for life (tenure) or for a specific time period (term).  If a borrower opts for a tenure payment, the payments would continue every single month for as long as the borrower lives in the property and the loan is in good standing even if they outlive their life expectancy.  If you opt for a term payment, the payments will cease once the term period has elapsed.

Lastly, a reverse mortgage borrower can combine any of these options in what would be considered a modified payment plan.  For example, a reverse mortgage borrower could receive funds disbursed at closing while allocating funds to a line of credit and funds to a monthly payment plan.  The amount of each would be dependent upon interest rates in effect, the age of the youngest borrower or spouse, and the amount of net principal funds available to be allocated.

 

 

How Interest Rates & Margins Affect the Principal Limit 

One of the things that can determine the amount for which borrowers will ultimately qualify is the rate at which the loan accrues interest.  When the margins on the adjustable rates were lower and the fixed rate was higher, the adjustable rates gave borrowers more money in their pockets in the form of eligibility.

Most borrowers who run the numbers receive more money on the adjustable rate program.  Knowing if you are trying to get as much as possible to pay off an existing lien is extremely important.

It also means that the higher the margin, the less money the borrower will receive, and the faster interest on the loan will accrue.  So, the thing to look for in a reverse mortgage is the rate on a fixed rate or the margin on an adjustable rate being quoted.

 

TIP #3: An increase in future interest rates may not necessarily be a bad thing, especially for those with the line of credit plan, as a rise in future rates is also matched in the guaranteed line of credit growth rate.

E.g., if your interest rate rises by 1%, your LOC growth rate will increase by the same rate.  The higher rates go, the larger your line of credit will grow!

 

 

Treasury Index History

The CMT Index stands for the Constant Maturity Treasury Index.  It is based on an average monthly yield of a range of Treasury Securities adjusted to a constant maturity equivalent to a one-year maturity.

The U.S. Treasury determines the yields on Treasury securities at the constant maturity from the daily yield curve.  That curve is based on the closing market bid yields for actively traded over-the-counter Treasury securities.

 

GNMA announced in September that it would no longer allow the LIBOR index to be used for HECM loans, effective February 1, , and lenders quickly moved to the CMT index.  Ultimately, lenders and HUD wanted to replace the LIBOR index with the new SOFR index, but the SOFR index was not ready in time, and the move was made back to the CMT to eliminate the LIBOR.

The SOFR is the Secured Overnight Financing Rate, which is the cost of borrowing cash overnight collateralized by Treasury Securities and cannot be manipulated as was supposed to be the case of the LIBOR.  Once it became known that the LIBOR rate was subject to manipulation, the rate was dropped as a financial staple for adjustable rate loans, and a major antitrust class action suit was filed.  There are currently more than a dozen individuals on trial for serious financial crimes.

The CMT is a long-standing and trusted index, and the SOFR is also an index that is beyond manipulation.

 

Where we are now:

Index Rate Resource: 1 Month Treasury Chart (Last 5 Years)

 

 

Interest Rate FAQs

Q.

What is the current interest rate for a reverse mortgage?

Presently, the lowest fixed interest rate on a fixed reverse mortgage is 7.560% (9.080% APR), and variable rates are as low as 6.375% with a 1.750 margin.  Disclaimer: interest rates are subject to change without notice.

Q.

How do interest rates affect reverse mortgages?

expected rates

In , you will see variable rates offering larger payouts over fixed programs as theon adjustable rates produce a higher principal lending limit.

The current interest rate environment directly affects the available reverse mortgage principal limit. The higher the interest rate, the lower the available proceeds to the borrower.

Q.

How does the margin work on a variable reverse mortgage?

Reverse mortgage lenders will adjust your interest rate by adding the margin to the corresponding index.  E.g., if you have an adjustable rate every month, the lender will adjust your current interest rate by taking the 1-year CMT index value and adding it to your margin.  At the time of application, you can negotiate the lender&#;s margin, which usually comes with upfront costs that vary depending on the type of loan.  Generally, the lower the margin, the higher the initial closing costs.

Q.

When is the rate locked on a reverse mortgage?

The actual note rate cannot be locked until the loan closing.  However, your expected interest rate on an adjustable loan is locked in at application for 120 days.  This allows your loan&#;s value to be locked in even if rates were to move up before your final lock at closing.

Q.

Can you make monthly payments on a reverse mortgage?

Yes!  At any time, you can repay interest only or principal plus interest without penalty.  Each month, you will receive a statement that outlines interest charges and your outstanding loan balance.  However, there is no coupon to remit a payment, so you&#;ll need to write a check back to the loan servicer for any amount you would like to repay.

 

All Reverse Mortgage flawlessly handled my reverse mortgage purchase, providing clear explanations and great professionalism. They promptly answered my questions and quickly returned calls. I highly recommend them to friends and family. -John P.(BBB)

Introduction to Purchase Reverse Mortgages

Welcome to our guide on Purchase Reverse Mortgages!  In this article, we will explain how you can buy a new home with a special kind of reverse mortgage, making it easier for you to transition to a new living situation as you age.  Whether you are considering downsizing, moving to a more accessible home, or relocating closer to family, this guide is for you.

We will cover the essentials &#; from the benefits of a Reverse Mortgage Purchase to how the Home Equity Conversion Mortgage (HECM) for Purchase program works &#; to help you understand if this option is right for you.

Reverse Mortgage Purchases Basics

The HECM for Purchase is the most common reverse mortgage used to buy new homes.  Applying for and qualifying for a HECM for Purchase follows the same steps as applying for any HECM loan.

Here are the main requirements:

• Borrowers must be 62 or older and meet the financial guidelines set by HUD.
• Borrowers need to make a significant down payment.  The reverse mortgage will cover the rest, requiring no monthly mortgage payments.

After getting a HECM for Purchase, borrowers must:

• Keep the home in good condition to meet FHA standards.
• Pay property taxes and homeowners&#; insurance on time.
• Pay any other property charges, like HOA dues.

The main difference between using a reverse mortgage to purchase a home and getting a reverse mortgage later is that the purchase is all done in one transaction, which means there are no duplicate fees.

For a Reverse Mortgage Purchase, the borrower needs to cover the down payment for the new home, which includes the required mortgage insurance.  This may cost more than a typical conventional home mortgage but is still less expensive than buying a home and then getting a reverse mortgage later.

If you&#;re considering a reverse mortgage, a single Reverse Mortgage Purchase is often a better option than buying a home and refinancing with a reverse mortgage later.

Eligible Properties

• Single-family homes
• Planned Unit Developments (PUDs)
• 2&#;4-unit dwellings
• HUD-approved condominiums

A certificate of occupancy must be in place for new construction before completing a HECM for purchase transaction.  Most property types can be purchased with a reverse mortgage, with a few exceptions.

Ineligible Properties

• Homes under construction and not yet habitable
• Co-ops, boarding houses, and bed-and-breakfasts
• Newly constructed homes without a Certificate of Occupancy

Certain types of manufactured homes may also be ineligible for reverse mortgage financing, especially those built before .  HUD sets minimum standards for manufactured homes, and any properties that do not meet these standards are not eligible for a reverse purchase mortgage.

Estimating Your Down Payment

With a reverse mortgage for purchase, the borrower must cover the down payment for the new home.  While this down payment is higher than for most other types of financing, there are no required monthly payments afterward.

Many borrowers use the equity from selling their current home to make the down payment on the new home.  If this isn&#;t enough, the borrower may need to use savings or other sources.  If the sale of the old home doesn&#;t cover the down payment for the new home, the borrower will need to provide the difference in cash.

FHA allows some sources, such as family gifts from those who do not have a stake in the transaction, to help with the down payment. If you plan to use gift funds, discuss this with your lender to ensure you meet the requirements for gift fund verification and eligibility.

The down payment requirement depends on:

• The age of the youngest borrower
• Current interest rates
• The price of the new home, or the

  HECM lending limit of $1,149,825

Typically, the down payment for a HECM for Purchase is between 45-70% of the purchase price.  The table below provides examples of down payment requirements for various home prices and borrower ages.

 

HECM Purchase Down Payment Estimates by Age and Home Value

Age% Down$200,000$400,000$600,000$800,000$1,00, 62 67.2%$134,400$268,800$403,200$537,600$672,000 65 65.1%$130,200$260,400$390,600$520,800$651,000 .4%$122,800$245,600$368,400$491,200$614,000 75 58.5%$117,000$234,000$351,000$468,000$585,000 80 54.1%$108,200$216,400$324,600$432,800$541,000 85 47.9%$95,800$163,600$287,400$383,200$479,900 90 40.9%$81,800$163,600$245,400$327,200$400,900

 

Sourcing Your Down Payment

Here are common sources for your down payment:

You will get efficient and thoughtful service from Honglai.

• Cash on hand (savings, 401k, etc.)
• Proceeds from selling your home
• Gifts from family

The most common ways to meet the down payment requirement are proceeds from the sale of your previous home and savings.  The Federal Housing Administration (FHA), which insures the loan, accepts various funding sources.

Acceptable sources for financing the down payment include:

• Earnest money deposits
• Withdrawals from savings accounts, checking accounts, or retirement funds
• Gift money from family members, employers, charities, government organizations focused on homeownership, or close friends with a documented interest in the borrower

All funds must be verified. Gifts from anyone involved in the transaction are not acceptable.  Other less common funding sources, such as collateralized loans, savings bonds, and employer assistance programs, can also be used.

Down Payment Sources You Can&#;t Use

The following sources are not acceptable for your down payment:

• Sweat equity
• Trade equity
• Rent credit
• Cash from anyone benefiting from the reverse mortgage transaction
• Cash advances from credit cards

 

Example of Reverse Mortgage Purchase

Let&#;s look at an example using a 70-year-old borrower who uses a reverse mortgage to buy a $400,000 home.  The required down payment is $182,000, which is approximately 45% of the purchase price.

Predicting future interest rates or how much your home will appreciate over time is difficult.  For this example, we&#;ll use a 4% annual appreciation rate for the home. The interest is calculated using an &#;expected rate&#; based on a 10-year index rather than the lower initial index rate.

While many properties appreciate more than 4% annually, 4% is a conservative estimate.  You can adjust this based on your own expectations for your home&#;s appreciation.

The down payment covers all upfront mortgage insurance premiums and third-party closing costs.  Based on the assumptions mentioned, the borrower would have $210,000 in home equity after five years of making no mortgage payments.  After ten years, this amount would increase to $257,000.

If the borrower later decides to move into an assisted care facility, the loan becomes due.  The borrower or their family can sell the home. Any equity above the outstanding loan balance belongs to the borrower and their heirs. They can:

• Pay off the loan and keep the house
• Sell the home and keep the proceeds
• Walk away and owe nothing

The remaining equity depends on the home&#;s future appreciation, interest rates, the amount and timeliness of reverse mortgage funds drawn (which are 100% at inception for a purchase), and whether the borrower makes any early voluntary repayments.

Also See: Here&#;s an Ideal Reverse Mortgage Purchase Example

Today's Reverse Mortgage Purchase Rates

Lending LimitFixed Rate Adjustable Rate $1,149,.180% (8.700% APR)6.885% (2.125 Margin) $4,000,.125% (10.612% APR)11.385% (6.625 Margin)
7.18% + .50% Monthly MIP = 7.68% in total interest charges. Fixed Rate APR calculated assumes a $250,000 loan amount and includes .50% Mortgage Insurance and standard 3rd party closing costs.

Pros and Cons of Purchase Reverse Mortgages

The HECM purchase program can be an excellent option for those who want to move during retirement, as it allows them to do so without making monthly mortgage payments.  However, like all loans, there are some pros and cons.

Pros

• The HECM for Purchase is insured by the government, offering protections like the non-recourse feature.  This means that when the loan comes due, you won&#;t have to repay more than the home&#;s value at the time of sale.
• This program allows you to buy a new home with a reverse mortgage in a single transaction.
• You can eliminate monthly mortgage payments while enjoying your new home.

Cons

• Like all mortgages, reverse mortgages can have a downside for some borrowers.  When the borrower passes away, the heirs might receive a reduced inheritance after the home is sold to repay the loan.
• Upfront and ongoing insurance premiums are required to maintain the loan, along with standard closing costs.
• A reverse mortgage may not be suitable for everyone.  It&#;s important to consult with trusted advisors to explore all options and understand how a reverse mortgage compares to other choices.

Additional Considerations

When purchasing a home with a reverse mortgage, it&#;s important to consider the real estate agent&#;s experience with reverse mortgages.  While your mortgage originator can assist with questions, working with a real estate agent familiar with reverse mortgage transactions can be beneficial.

HECM Purchase Changes & Improvements

1. Assistance with Borrower&#;s Fees:

   Parties involved in the home-buying process, such as sellers, agents, and builders, can now contribute up to 6% of the home&#;s cost to help with various fees.

2. Uses of the 6% Contribution:

   This amount can cover expenses like origination fees, closing costs (including credit reports and appraisals), prepaid items, discount points, interest rate reductions, and the initial mortgage insurance premium.  However, it cannot be used for counseling fees.

3. Additional Funding Options:

   In addition to the HECM loan, you can use other sources, such as gifts, disaster relief grants, and employer assistance, to fund your share of the purchase.

4. Seller-Related Fees:

   Usual seller fees, such as real estate commissions and home warranty costs, are permitted and do not count towards the 6% limit.

5. PACE Liens:

   Clearing a Property Assessed Clean Energy (PACE) lien by the seller is not considered an interested party contribution under this program.

These updates make buying a home easier under the HECM for Purchase program by allowing more financial support from various sources.

For More Information:

• Check the FHA Single Family Housing Policy Handbook at Hud.gov.
• Refer to the Federal Register for detailed updates.

Frequently Asked Questions

 

Q.

Can you get a reverse mortgage on a purchase?

Yes.  Reverse mortgages have been available for purchase transactions since .  The FHA implemented this to eliminate the need for borrowers to do two separate transactions when buying a new home.

 

Q.

How does a reverse mortgage purchase work?

A reverse mortgage for purchase works similarly to a standard reverse mortgage.  The loan amount is calculated using the age of the youngest borrower/spouse and the interest rate.  The borrower then brings in funds at closing to cover the difference.

 

Q.

How much is the down payment required on a reverse mortgage purchase?

The down payment required depends on the borrower&#;s eligibility as determined by the HECM purchase calculator.  Factors include the age of the youngest borrower/spouse, the interest rate, and the HUD lending limit.  Typically, a 62-year-old borrower may need a down payment of about 36% of the purchase price, while a 92-year-old may need about 65%.

 

Q.

Can I use funds from a cash-out refinance for the down payment on a HECM purchase?

No, HUD does not allow the use of borrowed funds for the down payment on a HECM purchase.  The funds must be in your account and seasoned.

 

Q.

How can I use a life insurance policy to get the cash necessary for the down payment on HECM for purchase?

If you sell the policy or withdraw funds available, show the terms of the sale or withdrawal and the receipt of funds through the deposit in your account.  You cannot borrow against the policy for the down payment.

 

Q.

Should the reverse mortgage purchase appraisal be near the asking price or just over the loan amount?

The appraisal must be at or above the sales price.  HUD will use the lower of the purchase price or appraised value to determine the loan amount.

 

Q.

Are condos eligible for the purchase reverse mortgage?

Yes, but the condominium project must be HUD-approved. There are also jumbo or proprietary programs for non-FHA-approved condos, but the HUD program is recommended for higher loan amounts and lower interest rates.

 

Q.

Can I purchase a multifamily property with a reverse mortgage and live in one of the units?

Yes, HUD allows up to four units in the reverse mortgage program if the property is owner-occupied.

 

Q.

Can you use a reverse mortgage purchase loan and then move to a nursing home?

To be eligible, you must occupy the property as your primary residence.  If you move into an assisted living facility, the home will no longer qualify as your primary residence.

 

Q.

Can I purchase with a reverse mortgage if I had a bankruptcy three years ago?

HUD is stricter on credit for the purchase program.  If your credit issues were three years ago and your credit has been good since you might qualify with a strong letter of explanation.  A lender must review your credit history first.

 

Q.

Can my spouse use a reverse mortgage to purchase the home as the sole owner?

If your state permits a non-borrowing spouse arrangement for reverse mortgages, your spouse could be recognized as such from the start of the process.  However, you must meet specific conditions, including attending mandatory counseling sessions and signing documents.

 

Q.

Can you sell the house, and if so, are there time constraints or limitations?

You can sell the home at any time without restrictions or penalties.  If HUD incurs a loss due to early departure, you would be ineligible for another reverse mortgage until the loss is repaid.

 

Q.

Can you sell the house, and if so, are there time constraints or limitations?

After obtaining a reverse mortgage through a purchase, you can sell with no specific time restrictions or limitations as you are the homeowner, and there is never a prepayment penalty.  If you decide to sell the home without causing any financial loss to HUD from the initial transaction, you retain eligibility for securing another reverse mortgage on a different property, should you choose to do so.  However, if HUD incurs a loss due to an early departure on your part (which is unlikely if you sell the property shortly after purchasing it), you would be ineligible for another reverse mortgage until the loss from the first loan is fully repaid.

 

Q.

Is it possible to sell a home with an existing reverse mortgage and use the proceeds to buy a new one with a new reverse mortgage, allowing both transactions to close simultaneously?

Yes, but the new home can only close once the new reverse mortgage lender has verified that the old loan is fully paid off. There may be a slight delay between the transactions.

 

Q.

How can I find realtors who understand HECM for purchase?

Look for real estate professionals with experience in reverse mortgage transactions.  Call a few real estate firms and ask if they have agents familiar with the program.  Understanding HUD rules and requirements is crucial.

ARLO recommends these helpful resources: 

• Read about our own HECM Purchase client success story in Kiplinger&#;s Retirement Report

HECM Purchase YouTube Series

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What is a Reverse Mortgage for Home Purchase?

HECM Purchase Vs. Traditional HECM

Real life examples of HECM for purchase (PART 1)

Real life examples of HECM for purchase (PART 2)

HECM Purchase Eligibility & Qualifications

HECM Purchase - How is the Down Payment Calculated?

HECM Purchase - What Are the Allowable Sources for Down Payment?

Why a HECM Purchase Single Transaction Saves on Closing Costs

HECM Purchase - What Property Types Are Eligible?

HECM Purchase Eligibility & Qualifications

HECM Purchase Pre-Approval & Application Process

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