WIll Grandma be able to quailify for a reverse mortgage?
Could you check out this situation for me and tell me what you think. This was Dan's effort to provide a home for his grandmother who is 81. Dan purchased a home on Nov. 5, 2010 for 22,000. that he was going to rehab for her to move into. Dan used Grandma's money to buy the home and has documented proof. Dan got a rehab loan from a local bank for 10,000. and then finished it up with another 20,000. using unsecured credit. When Dan finished the home he deeded it to Grandma on May 10, 2011. She has been living there since then. Grandma would like to do a reverse mortgage on the home. They have an expired FHA appraisal for $97,000. and understand that they would need a new one.Can grandma do a reverse mortgage on the property? She has been on the deed for almost 6 months(Nov 10, 20111 will be six months) and have also lived there. They have documentation to prove that. Assume an appraised value of $97,000. and a lien of $10,000.She would like to apply Nov. 10. She has a counseling Cert that expires Nov 5. Could she use that?...thanks, John by sethbg_214_902 from Whiting, Indiana. Oct 26th 2011
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
The answers to all your questions is YES.. the home qualifies, she qualifies, and the i'm pretty sure she can get an extension on the counseling cert... best bet is to contact a local mortgage broker, not a bank, and let him look at the details of your particular scenario. WilliamAcres.com
Ron Pippin (RonPippin)
#26 ranked lender in Utah - 158 contributions
Yes she can I am a reverse mortgage specialist. you did the right thing by adding her to the title of the home. Because she has been on title for the last 6 months she can indeed apply for a reverse mortgage. a new appraisal will be needed. Call the counselor who issued the certificate and ask what needs to be done to extend or obtain a new certificate. www.62andolder.com
James Barath (JamesBarath)
#9 ranked lender in Indiana - 352 contributions
Since eligibility for a reverse mortgage is based on age, Dan's grandma is definitely eligible. Grandma being on title SOLELY would make the single family home eligible. In regards to valuation, you would want to wait until the 12 months seasoning the purchase date since Dan's grandma will want to take advantage of the appreciated improved value. The counseling certificate is the least of Dan's grandma's concerns and there are several counseling agencies in Northwest Indiana that will provide it for free. Have a great autumn day in the region.
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