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Old 09-14-2019, 11:09 AM
Location: North Idaho
23,209 posts, read 29,668,886 times
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My sister took out a reverse mortgage to buy out my half of our mothers house when my mother died.

However, the way the reverse mortgage is structured, you don't get the full amount as a lump sum. You get draws. My sister got about 10% of the value of the house from a reverse mortgage.

I got copied on all the paperwork and that is some mighty expensive money. To her it didn't matter since she was never going to pay it back and she had disowned her three children and wouldn't be leaving them the house.

OP, you are going to have to talk to some banks to see what they offer. I think that my sister had to shop around to find a bank that would give her a reverse mortgage to buy a house (or half of a house; she already owned half)
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Old 09-14-2019, 12:48 PM
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Originally Posted by thrillobyte View Post
Anyone ever heard of this technique? Does it exist?

Retired couple, no kids, no heirs. Have a million dollars cash. Want to buy a 1.5 million house in a highly desirable area like Carmel but don't want to take out a loan that would require monthly payments. Would like to get an immediate reverse mortgage for half-million using the million cash as collateral. No payments. When I die the house goes to my wife. When she passes the bank takes the house. Doable?
As another poster said, getting a loan bigger than $400k is going to be difficult, but you could in theory still get a $1.4 million house.

But I don't think it is a good idea to get that expensive of a house without making sure you have enough money left to pay the property taxes and insurance as well as all your other living expenses.
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Old Today, 10:41 AM
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Originally Posted by anicon View Post

You should call your loan sericer to confirm this. You can also call FHA directly: 1-800-CALL-FHA.

As far as I know, the deferral period (Non-Borrowing Spouse protection) is only available to case numbers assigned on or after 8/4/14. Which is when Mortgagee Letter 2014-7 went into effect. https://www.hud.gov/sites/documents/14-07ML.PDF

If you took your loan out 10 years ago and haven't refinanced, I believe your loan will come due if your spouse pre-deceases you. To be protected, you need to refinance to be added as a borrower or a NBS again.

There are churning rules against HECM to HECM refinances. These rules are waived if you're adding a spouse that isn't on the old loan. But the #'s still need to work.


Wanted to update this post. HUD released additional guidance this week regarding non-borrowing spouses with case numbers assigned prior to August 4, 2014. https://www.hud.gov/sites/dfiles/OCH...19-15hsgml.pdf

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