Reverse Mortgage

Question 1

What type of home loan is for seniors ages 62 and older, who have paid off their mortgage or paid off a large part of the mortgage.?

Answer 1

Reverse Mortgage 29-1

Question 2

There are 3 types of reverse mortgages, what are they?

Answer 2

● Single-purpose reverse mortgages ● Home equity conversion mortgages (HECMs) ● Proprietary reverse mortgages 29-1

Question 3

What type of reverse mortgage is the least expensive option for a reverse mortgage loan?

Answer 3

It is only used for a single, lender-approved item like repairs to the home or property taxes. Single-purpose reverse mortgages. 29-1

Question 4

What is the most widely used reverse mortgage because it carries no income limitations or medical requirements, and the loan can be used for any reason.

Answer 4

Home equity conversion mortgages (HECMs) 29-1

Question 5

What type of reverse mortgage can the borrower qualify for if the property is worth more than the $1,209,750 for 2025 ($1,149,825 for 2024)?

Answer 5

Proprietary reverse mortgages 29-1

Question 6

What is a common method with a reverse mortgage, when the borrower receives a monthly check instead of making a payment?

Answer 6

Tenure method 29-2

Question 7

In a Reverse mortgage Instead of getting the LE and CD What disclosures does the borrower receive?

Answer 7

GFE, Initial TIL, HUD-1, Final TIL 29-4

Question 8

When Does a Reverse Mortgage Become due?

Answer 8

When the borrower fails to pay property taxes, hazard insurance, and flood insurance (if applicable), upkeep on the home, when the last surviving borrower dies, sells the home, or no longer uses it as a primary residence. 29-3

Question 9

What is the maximum loan limit on a reverse mortgage for federally backed HECMs?

Answer 9

$1,209,750 for 2025 ($1,149,825 for 2024)