Retirement Answers / Reverse Mortgages / can the land value be used for a reverse...
  • Question

  • can the land value be used for a reverse mortgage?

    Asked on 1/3/2008

    We live in a manufactured home on 1 acre of ground in a highly developing area. The home was built in 1970 and I am told it does not qualify for a reverse mortgage. My question is would the land value qualify for it as it is appreciating at a rate of about $30.000 per year or are there any other programs that could help us in getting our equity out without refinancing. Thank you very much.

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  • Categories: Reverse Mortgages

Answers

  • NewRetirement User

    Not yet rated:  

  • My understanding is that a reverse mortgage is based upon the property value of your home. In many areas, those property values are falling.

    My suggestion is that you visit your local savings bank or regular commercial bank and discuss your question with them.

    The issue, of course, is whether you can comfortably repay the loan that you take out. These days, banks are more careful about determining how credit worthy is the applicant. And they adjust the interest rate accordingly.

    In other words, the banks will increase the interest rate as the Credit Score of the applicant goes down.

  • Login to rate this answer:   Answered on 1/4/2008

  • NewRetirement User

    64 year old from Rochester, NY

    Not yet rated:  

  • You may want to consider a Home Equity Conversion product - they are only available in a few states, but some of them allow a person to use a wider range of asset - such as commercial property, so they may allow the land value - you'd have to ask.

    You can read about them on this site.
    https://www.newretirement.com/Services/Home_Equity_Conversion.aspx

  • Login to rate this answer:   Answered on 1/4/2008
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.