Forgotten Your Password?

Need to Register?

Question Icon

Is there a minimum equity needed for a reverse mortgage?

My parents are retired an owe 60k on their home by CorinaCurlySoto99 from Dayton, Ohio. Sep 11th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

There is.. it's based on the age of the oldest person living in the home.. the older they are, the higher loan to value allowed.. here's a link to the governments website so you can calculate the maximum loan amount allows for your parents scenario.. http://www.reversemortgage.org/About/ReverseMortgageCalculator.aspx ... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Sep 11th 2013
2
0
Larry Gray (lgray_312_247)
#593 ranked lender in California - 1,139 contributions

William of Velocity provided a pretty solid answer. It is hard to get more specific other than to say there is a minimum percentage of equity that is required and it is related to age of the oldest in the home. The FHA reverse mortgage loan itself really is liking having a loan in reverse.Thus, as time goes on they retain any equity outside of what is owed to the lender. There often is equity remaining whenthe property becomes part of inheritance. On the other hand, should there be no equity remaining at some point it does not matter as far as remainingin the house to the end of both parent's lives. Another thing to note is that it is possible to get the reverse mortgage at far less cost then it used to cost.

Sep 11th 2013
0
0
Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,317 contributions

Depending on their age, they will need an appraisal value of at least $90K, or more. If the value is at least this much, start the process ASAP, as the amount of equity needed will increase on September 30, 2013. The age of the youngest person on title is used to determine the equity required.

Sep 11th 2013
0
0
Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

see the link william provided.

Sep 11th 2013
0
0
Craig Prickett (cpmtgnow)
#160 ranked lender in Florida - 97 contributions

depends on there age? The older the person the less equity needed... Call me if have questions 954 558 4430

Sep 11th 2013
0
0
Subscribe to our news feed.