Yes. A complete FHA appraisal is required to obtain a reverse mortgage. If two appraisals are required, the lower of the two values will be used for the reverse mortgage calculations. Proprietary (Non-HUD insured reverse mortgages) can also require two appraisals, but only when the home value is at or above $2 million.
Who do you contact for a reverse mortgage?
(877) 373-4542 To contact the California Department of Real Estate, call (877) 373-4542 toll-free for assistance in English or Spanish. What is a Reverse Mortgage?
Who sells the house in a reverse mortgage?
Therefore, the answer is yes: a borrower can sell a home with a reverse mortgage at any time they choose, just like a traditional mortgage. When a borrower sells their home, they must repay the reverse mortgage loan balance and their lender will close their account. Borrowers then keep the remaining equity.
WHO issues reversed mortgages?
Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage (HECM), and is only available through an FHA-approved lender.
What age can you do a reverse mortgage?
age 62 and older Reverse mortgages allow homeowners age 62 and older to access their home equity to generate income in older age. While a reverse mortgage may be ideal for some situations, it is not always best for others.
What do they look for in an FHA appraisal?
So, what does the FHA appraiser look for during this process? The primary areas of inspection are the roof, the foundation, lot grade, ventilation, mechanical systems, heating, electricity, and crawl spaces (when present).
Why would a seller not accept an FHA loan?
There are two major reasons why sellers might not want to accept offers from buyers with FHA loans. The other major reason sellers don’t like FHA loans is that the guidelines require appraisers to look for certain defects that could pose habitability concerns or health, safety, or security risks.
What are the drawbacks to a reverse mortgage?
But a reverse mortgage comes with several downsides, such as upfront and ongoing costs, a variable interest rate, an ever-rising loan balance and a reduction in home equity.
