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Seems to me like permits would have to be pulled to hire out the basic electric, water and sewer lines, get an address for the lot, draw up a site plan, and as part of the permitting process, I would think that the permitting body -- in this case probably the City to make sure its codes are followed -- would be able to say what is and is not allowed.
Thank you for the info and links to FHA that pretty much answer my original question. I sure did learn a lot -- pardon the pun.
Cannot do for an empty lot because the rules specify that the borrower must live in the property that has the reverse mortgage. There are some details about temporary leaving for limited number of days. But once out for awhile or no longer living there, then the reverse mortgage lender wants the property sold.
The whole idea behind the reverse mortgage is so seniors can obtain money for their primary residence while still living there. Since he doesn't live on the lot, they won't allow the reserve mortgage because he doesn't meet the basic criteria.
Seems to me like permits would have to be pulled to hire out the basic electric, water and sewer lines, get an address for the lot, draw up a site plan, and as part of the permitting process, I would think that the permitting body -- in this case probably the City to make sure its codes are followed -- would be able to say what is and is not allowed.
Thank you for the info and links to FHA that pretty much answer my original question. I sure did learn a lot -- pardon the pun.
More than that. It needs a house. And the borrower needs to live in the house.
if he needs money to supplement his retirement, what difference does it make to him if he encumbers his house or the lot? his heirs could always sell the land to pay off the reverse mortgage at the end if his concern is keeping the house in the family.
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