What types of homes will not qualify for a reverse mortgage? Can I have a reverse mortgage on more than one home? Is more than one reverse mortgage legal?
Most reverse mortgage lenders will not lend against properties that are not your main residence such as vacation homes or time shares. You can not get a reverse mortgage against a mobile home unless it is permanently attached to the property. You are not allowed to get a reverse mortgage on any type of home or residence that is located upon leased property. Rental properties that have more than 4 units in the building also do not qualify for a reverse mortgage. Some lenders will allow condominiums to be considered for a reverse mortgage but that would have to be verified with each lender.
Can I have a reverse mortgage on more than one home?
Reverse mortgages are designed to be used on the main residence of the borrower only. You can not have a reverse mortgage on any other property that you have. This is fraud prevention so people with many properties are not collecting off of each one and unable to repay the debt after their death. This safeguard was put into place to ensure there is no abuse of this system.
Is more than one reverse mortgage on your home legal?
You are only allowed to have one reverse mortgage on your home. When you have a reverse mortgage placed upon your house it is recorded and placed upon the deed to your home. If for any reason it was attempted to take out a second reverse mortgage upon the home the new lender would immediately be notified and the process stopped. Attempting to get a second reverse mortgage on a home can and will be considered fraud.
Related posts: