I had a fellow come in today concerned he might have a problem qualifying for a Reverse Mortgage loan, because his home is in need of some repairs. He explained that his fence in the backyard needed to be replaced as well as his electrical and plumbing needed some repairs. He didn’t have the funds in savings to do these things, and he wondered if he might be able to use some of the money from a reverse mortgage to make the needed repairs.
There is a way to use funds from a Reverse Mortgage loan to make necessary repairs deemed by FHA, it just makes the loan application process a little longer, maybe two to three weeks.
Once an FHA appraisal has been made the amount available in a Reverse Mortgage Loan will be determined. Estimates for repairs are submitted, funds for the repairs will be deducted from the amount available, the loan will be closed pending the repairs being completed. Once completed the FHA appraiser will come back to confirm repairs completed, then the funds held back will be issued to the homeowner. This process usually takes two to three weeks, and sometimes this is discouraging to the homeowner.
The good news is we help our clients walk through this process with the least difficulties, because we have done this for previous clients many times and we know the process. It makes a difference when you have a friend in your corner!
Give us a call today at (806) 793-3944 to discuss your options for a Reverse Mortgage.