Reverse Mortgage for an Unmarried Couple

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Recently, a lady came to us for a Reverse Mortgage and wanted to add her significant other.  They had been living together for more than 20 years.  The home has been in her name alone.  She wanted to add him to title and get a Reverse Mortgage so either could continue living in the property if the other dies.  While the process of adding him to title and originating a Reverse Mortgage in both names is relatively easy, I recommended she consult a lawyer to be sure estate issues were arranged as she wanted them.

RM older unmarried couple

The process of separating the financial interests of unmarried borrowers is easy of both parties agree, but can be challenging if there is disagreement.  It would be important to arrange the estate succession properly so that if either one died first, the succession and beneficiaries of the estate were arranged per her wishes.  It would also be important to understand how this transfer might affect payment for long term care or other medical conditions, particularly if Medicaid became a payer.

I would be happy to speak with you regarding this option.  Please contact me at 303-469-1254.  For a listing of quality professionals I’ve worked with, please visit this page.

Reverse Mortgage Success

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When I talk about Reverse Mortgages, the common reaction is that people who would benefit from them don’t want one.  My response is that during my many years in the mortgage industry, no one has ever come to me wanting a mortgage.

Goal Examples
  • You want to live in a certain home, but don’t have enough cash to pay for it.
  • You own a home and want lower payments, or less interest.
  • You have equity and want to convert the equity to cash so you can buy something.

These same things apply whether it is a traditional mortgage or a Reverse Mortgage.  The critical difference is that with a Reverse Mortgage, the payments are deferred until the borrower no longer lives in the home.  Instead of making monthly mortgage payments, the mortgage payments are added to the loan balance.

parents at door greeting kids

Successes of Clients We Have Assisted
  • Borrowers have come to us for purchase loans when they wanted to move closer to their children. They had equity from the sale of another home, but not enough cash to pay for the home they wanted.  By combining their cash with a Reverse Mortgage, they bought the home they wanted.
  • Another borrower sold a home that was free and clear and bought a more expensive home in a nicer location with a Reverse Mortgage and no monthly mortgage payment. She just had to pay taxes insurance and maintenance while living in the property.
  • One borrower had an $1,100 house payment and about $1,300/month social security. An inheritance allowed her to pay the mortgage down enough to get a Reverse Mortgage, eliminate the mortgage payment and stay in her home.
  • Some borrowers need additional income. By converting the equity to cash with a monthly payment for life, the borrower can get the income they need without depending on children or others.  This option may be beneficial for children because it can eliminate the need to write a check to help parents each month, and may or may not result in a lower inheritance later.
  • A 76 year old lady wanted to move, but did not want a Reverse Mortgage. She could easily qualify for a traditional mortgage.  When I pointed out that a Reverse Mortgage might allow her to give up her job, she became interested.
Reverse Mortgage Requirements

The basic requirements to get a Reverse Mortgage are that at least one borrower must be 62 or older, live in the property as a primary residence, complete FHA approved counseling, and satisfy income, asset, and credit underwriting guidelines.

The reasons for a Reverse Mortgage are as varied as the people who get them. Please feel free to contact me at 303-469-1254 to discuss your current situation and what your goals are.  I would be happy to explain your options and provide a free, no obligation, proposal.

Improve Cash Flow With a Reverse Mortgage

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Reverse mortgages can be used in many ways to increase cash flow for daily living.

Following are some examples:

A single lady came to us with about an $1100/month mortgage payment and about $1,300/month in Social Security income.  This income/outgo situation clearly could not result in a balanced budget.  She owed too much on the home to qualify for a Reverse Mortgage.  When she received an inheritance, she was able to pay the loan balance down to where she could qualify for a reverse mortgage.

An 80 year old man was spending down his retirement accounts at a rate where the money would soon run out.  He chose an option that gave him payments for 10 years that would allow him to make his retirement accounts last.  After 10 years he planned to sell the home and move, but the Reverse Mortgage allowed him to live comfortably in his house for another 10 years.

son helping father with finances

A 99 year old man had a home that was free and clear, but he was reaching the end of his financial resources to pay for care and maintain the property.  A Reverse Mortgage allowed him to buy a new furnace and continue to pay for private pay care so he could continue living in his home.

A 78 year old woman was referred to us because her retirement savings was being depleted such that she would be out of money in 4 years.   She had a home that was free and clear.  A reverse mortgage provided enough monthly income so that she would not have to deplete her investment accounts.
elderly woman at laptop with daughter

A 70 year old couple was depleting their investments at a rate that would leave them out of money soon.  They had enough equity in their home to obtain a Reverse Mortgage that would eliminate the mortgage payment, installment debt, and credit card debt.  By eliminating the debt payments, they have enough income to balance the budget and stay in their home.

A couple that had spent more than 25 years as missionaries owned a home.  It was not paid off, and their missionary support was dropping.  A Reverse Mortgage allowed them to eliminate the mortgage payment and continue living in the home with their available income.

I’m always happy to provide free information to help a buyer understand their options with either a conventional forward mortgage or a Reverse Mortgage.  Please contact me to discover options that may be available to you.