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Reverse Mortgage For A Home With land

Our home sits on a large parcel of land, is this type of home elligable for a reverse mortgage? Westchester,PA | Dec 8th 2010
by stub99332
Answer


by LHARVEY

The land value does have some bearing on the value which can be used for the reverse mortgage. Generally 30% or less has to be assigned to land for the appraisal to be acceptable for FHA HECM financing. If the land is valued at more than that amount then the underwriter will use a lesser value for the land which will reduce the total principle amount of the mortgage. You will not be in-eligible for the loan just because of a high land value. give me a call at 484-331-2436 if you want to discuss this in more detail.Leo J Harvey, Gateway Funding DMS

Dec 8th 2010
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