Will I Need To Fix My Home Before I Get A Reverse Mortgage?

Will I need to fix my home before I get a reverse mortgage?  Read here if you will need to make repairs to your home before you are approved!

In most situations you will not need to make any repairs to your home before you get a reverse mortgage.  However, there are a few situations where you may need to make repairs in order to get what you want out of a reverse mortgage.

Repairs Affect Value

The first situation when you will need to fix your home before you get a reverse mortgage is if the needed repairs are affecting your home’s value.  Reverse mortgage lenders place a cap on a reverse mortgage which prevents total proceeds to exceed a certain percentage your home’s value.  If your home’s value is hindered because you don’t make certain repairs, than the amount of proceeds you can receive from the reverser mortgage will be limited.

Affects Your Ability to Live in the Home

The next situation when you will need to fix your home before you get a reverse mortgage is if you are not able to live in the home unless the repairs are made.  Reverse mortgages must be secured by an individual’s primary residence.  If you can not live in a home because repairs are not made, then the reverse mortgage lender will refuse to approve your mortgage until the repairs are made and you move back into the home.

Prevents You from Getting Insurance

The last situation when you will need to fix your home before you get a reverse mortgage is if the necessary repairs prevent you from getting home owner’s insurance.  Most reverse mortgage lenders will require you to get homeowner’s insurance.  If the insurance provider is not willing to continue to insure because certain repairs aren’t made, then the lender will not be willing to issue a reverse mortgage.

Related posts:

1. If My Home Needs Repairs, Can I Get A Reverse Mortgage?
2. Can My Home Be Taken From Me If I Have A Reverse Mortgage?
3. What Happens To The Equity In A Reverse Mortgage Home If It Is Sold?
4. Can A Parent Do A Reverse Mortgage On A Child’s Home?
5. Is It Better For Me To Get A Reverse Mortgage Or Sell My Home?

This entry was posted on Wednesday, February 24th, 2010 at 4:39 pm and is filed under reverse mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.