Anyone have a reverse mortgage and you haul water? (Ash Fork: foreclosures, insurance)

[hayjude]

Hi,

I will be 62 very soon and own my place outright. It's 10 acres with a 2005 stick-built house, garage, pump house, etc. There are no wells here in Ash Fork area, so everybody has water delivered or they haul their own. I have it delivered by a licensed company, so the water is good. I have 5,000 gallon storage capability.

I am considering a reverse mortgage since I don't have any heirs and nobody will fight over what I leave Two of the ladies I work with say they were turned down for a reverse mortgage because they haul their own water. However, they both have manufactured homes. Is that why they were turned down?

I am curious about the process and how picky the inspection and appraiser is.

Thanks for the help!!

[keninaz]

Banks are looking for properties that they can sell and normally they would want property that is complete, in that is has water.
I know my last property had a shared well and they were a little picky about granting a loan for it. They needed to see the well agreement and make sure that it meant there criteria. They did not like the language in the well agreement and almost did not give us a loan.
With lending institutions as picky as they are now I am thinking that you are going to have a problem finding a lender.

[mjazz]

I thought about one myself, then I read that reverse mortgages are not the best move.
Here are some reasons why.

[hayjude]

Thanks for the link mjazz. I've read all of the pros and cons and it is right for me since I don't have a mortgage or anyone to leave my home to. I may as well have property work for me instead of me working for it!! Oh, all of the costs can be either paid up front or throughout the life of the RM. If I can pull 80k out and not have to pay it back until I'm dead, then why not??

keninaz...I won't be borrowing money, so I won't need a "lender". HUD and FHA are the sources and that is why I'm curious about the hauled water. Places sell just fine without wells or city water. I'm sure a reverse mortgage has different criteria.

I don't want to get turned down at the end of the process like my 2 co-workers. I'm almost certain it was because they had manufactured homes (not considered real property, even on the tax bill) and HUD wants those homes hooked up to city services. I guess they figure the house can be put back on wheels and moved away and HUD would lose the money LOL!

[keninaz]

You missed the point.
You are borrowing the money, as such. Your home is the collateral.
There are other rules that apply too.
You must keep the insurance up to date, to their specifications, not yours.
And your property may be subject to inspections as a result of the loan from time to time.
You must also do maintenance on it as required.
These "loans" as they call them are not all that great according to some people that I know that took them out and lived to regret it.
What I am trying to tell you is that loans of any kind are not as easy to get as they were.
But maybe you don't watch the news.

[Gandalara]

From HUD:
4. What types of homes are eligible?
To be eligible for the FHA HECM, your home must be a single family home or a 1-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.


I couldn't find anything about being connected to utilities anywhere on the pages - but there is a Contact Us button. Maybe you could send them a note?

[keninaz]

Does HUD do reverse mortgages? That is what this guy is looking for.
When I saw the water requirements before they were lender requirements and had nothing to do with any federal agency.
And HUD may say they are OK with manufactured homes, but just try to find a lender since 2008. With all the homes on the market and foreclosures lenders for that industry have pretty well dried up.

[AZDesertBrat]

Originally Posted by hayjude

Hi,

I will be 62 very soon and own my place outright. It's 10 acres with a 2005 stick-built house, garage, pump house, etc. There are no wells here in Ash Fork area, so everybody has water delivered or they haul their own. I have it delivered by a licensed company, so the water is good. I have 5,000 gallon storage capability.

I am considering a reverse mortgage since I don't have any heirs and nobody will fight over what I leave Two of the ladies I work with say they were turned down for a reverse mortgage because they haul their own water. However, they both have manufactured homes. Is that why they were turned down?

I am curious about the process and how picky the inspection and appraiser is.

Thanks for the help!!

My mom thought about doing a reserve mortgage on her home but because it's a double wide mfg. home they turned it down. Even though it's been here for years, been added onto to make it a good sized home and has a large lot. So it's likely that's why your friends were turned down AND the water situation. Double whammy...

[hayjude]

I forget where I saw that HUD will only back manufactured homes hooked up to city services. I also read that the house has to be a double-wide and made after 1976. The original approved HUD tag has to be in tact on the house. No modifications are allowed to the structure unless HUD approves them.

I'd still like to know if my stick-built stucco house on 10 acres with water delivered will qualify. It's a good place and the house and unattached garage are insured for 165k.

keninaz...I'm not a he (whink)...and I know all about what is expected during the life of a reverse mortgage. I've done a lot of research and know it's a good thing for me. It'll make my retirement a bit easier. Why not go for it??

[Gandalara]

Originally Posted by keninaz

Does HUD do reverse mortgages? That is what this guy is looking for.

Reverse mortgage = HUD HECM (Home Equity Conversion Mortgage)

It's the government - they have to call it something different, ya know