Can I Get A Reverse Mortgage For My Condo?
January 29th, 2008
- Reverse Mortgage and Quitclaim Deeds: Is This A Troubled Brew?
- The Younger Spouse and the Reverse Mortgage
- Reverse mortgages for spouses with an age difference
- Can I Borrow a Reverse Mortgage Without My Spouse?
- Are Reverse Mortgages Right For Your Retirement Mix?
Robert asks if he is a good candidate for a reverse mortgage.
“My Florida condo is worth approximately $400,000. It has a $99,000 first mortgage and a $123,000 home equity loan. I would like to pay off both and have about $20,000 to save as a reserve. Can I get a reverse mortgage?”
The answer, I suspect, works like this:
First you need to contact reverse mortgage lenders licensed in your state. Then you need to ask a few basic questions:
*What is the maximum FHA loan available in your area? (Remember, HUD insures about 90 percent of all reverse mortgages.) In your situation you are looking for $242,000 plus closing costs ($99,000 + $123,000 + $20,000)
*Are you age 62 and above? (If both you and your spouse are younger an FHA reverse mortgage is out. If a spouse is younger then it may be necessary to create a trust.)
*What is the value of the property today? Given what has happened to condos in Florida you need to be certain the property really has a $400,000 fair market value.
*What are the costs and fees required to get the financing you want?
As the expression goes, it’s now time to go forth and shop around.