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QUESTION:
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Reverse Mortgage & a HELOC |
In order to buy out my ex in 2004, I took out a reverse mortgage, but it left me with no equity. I was able to get a HELOC from Washington Mutual for $53K in 2004!! When I learned of the new limits in November of 2009, I re-financed my reverse mortgage and was calcuated at leaving me with about $20K of equity with Financial Freedom, but it did not work out this way. The equity had to be used to pay off
Washington Mutual and left me with only $2K in my Financial Freedom account. I have at this time about $91K in home equity and, of course, this is being reduced each month, but is there any lender that would give me a HELOC on a portion of this...maybe $15K with terms that protect them on payback? |
 | asked by drroddy, 5/2/2009 |
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Categories:
Estate Planning
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| ANSWERS: |
| Answered by: Editorial, 05/11/09
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There can be no other loans/liens/mortgages on a property when you have a Reverse Mortgage -- as far as I know. I am surprised that you were able to get the HELOC in 2004.
Your best option for releasing some of your home equity may be to explore downsizing -- selling your existing home and relocating to a less expensive area or home.
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| Answered by: whyhecm, 05/18/09
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I had been told by a client that there local bank gave them a 2nd mortgage after the FHA reverse mortgage. So yes its possible with the right bank.
You may consider using the HECM reverse mortgage purchase program to downsize and buy a new home. You would have to sell your current home to be able to use the HECM purchase program. If done correctly you could still have money remaining after the sale of your home and be able to live in your new home with no payments.
Feel free and contact me at anthony@whyhecm.com for more details.
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