I was told by my bank that if I have a reverse mortgage, I would not be eligible for a bank loan as a homeowner, because the rever

A reverse mortgage consists of a promissory note and TWO trust deeds. The first trust deed (mortgage) is held by the lender, the second trust deed is held by HUD. A subsequent bank loan would be in third position, and the secured equity position would diminish each month, as the first mortgage balance increases. I am a reverse mortgage specialist in Portland, Oregon, and would like to answer any specific questions you may have, and, if you chose to proceed with a reverse mortgage, offer you the best possible service available. For a free evaluation of how much money would be available to you, call me, Dave Metsker, at 503-620-2239.

There are various ways that a reverse mortgage will allow you to tap your equity. However you decide that, there will interest that will accrue on the outstanding balance. Because of the balance increasing over time a bank or CU will not place a 2nd lien on the property. On the plus side, your heirs will never see a payoff balance on the reverse that exceeds the sale price of the home.

The answers above good answers but are thinking of getting another loan on this property or another property such as buying another property with the money from the reverse mortgage?

Apply for a reverse mortgage with a equity feature

I've had several clients get a Home Equity Line of Credit after they got their Reverse Mortgage - there's nothing that says a Bank can't lend money on a property that has a Reverse Mortgage. However, its got to make sense to the bank, and they won't lend anything unless they're comfortable that a lot of equity will be left in the property when the Reverse Mortgage is due and payable.

Our sister office in Portland, Bay Equity, can be reached at 503-715-0254, and they can answer your questions, with regard to your specific situation.Basically, with a reverse mortgage, unless you are right at the edge of qualification on equity, you will have an equity line available, which can be accessed either in lump sum, equal monthly payments or as you need it.