How Much Can I Get?
Contact Reverse Mortgages Only

But How Much Can I Get?

This is the question we are asked most often. And the answer is quite honestly – “it depends”.  But it is clear what it depends on. That is:

  • The age of the youngest borrower on title to the home (and we need exact birth dates)
  • The qualifying interest rate for the type of loan requested.

The lesser of:

  • The value of the home based upon a current appraisal
  • The national lending limit currently set by HUD at $625,500.

So specific information is needed to advise you how much you may qualify for - called the “Principal Limit”. But the Principal Limit will be the same for all lenders offering the exact same type of loan. (What separates the lender competition is flexibility around closing costs.)

To determine funds available to you, we must also subtract any existing mortgages and liens which need to be cleared. And we must subtract loan closing costs, if any. And we must perform a "financial assessment" evaluating your "willingness" and "capacity" to continue to pay your obligations as you remain in the home.  So now it is perhaps a bit clearer why we frequently say “it depends".

But here is an example: Elizabeth, who just celebrated her 75th birthday in early 2016, and who owns a home valued in excess of the lending limit of $625,500, would be eligible, at most, for ~$384,057 “principal limit” under current (Aug 2016) loan programs.  If she had any current mortgages or liens on her home (past property taxes, for example), these obligations would be paid before any additional funds were made available to Elizabeth.

Is a Reverse Mortgage right for you?

Every family situation is different.  Consider the following:

What are you trying to accomplish?  

What current mortgages need to repaid?  

What “cash advance” is needed at funding?  

What is your present income?  

What are current and future cash flow needs?