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CompanyLoan TypeAPREst. Pmt.

reverse mortgage

Can a home with a reverse mortgage be rented? Leased?
Proceeds from a reverse mortgage can be used to purchase another home, I know that this type mortgage is for seniors to stay in their own home, however if the proceeds can purchase other property can they move to that other property?

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi bret!

Welcome to the Forums!

The home on which you take reverse mortgage, has to be your primary residence. The reverse mortgage becomes due if you rent any portion of the house or leave your home. So you cannot move out of the property and if you want to move out, you will have to pay back the mortgage.

Feel free to ask if you have further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:48 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi bret!

Reverse mortgage is offered on a primary residence. If you rent the house or lease it, your reverse mortgage will be due and you will have to pay it off. Even if you abandon the house, your reverse mortgage becomes due.

Thanks,

Jerry

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:48 | Post subject:

brian1's picture
brian1 | Joined: June 14, 2008 05:14 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

No unless it is short term while the primary homeowner is in the hospital or something. Once the homeowner has been out of the home for 12 months the note becomes due.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:48 | Post subject:

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>reverse mortgage becomes due if you rent any portion of the house

That statement is inaccurate. A homeowner can rent out bedrooms or their guest house or whatever, and the Reverse Mortgage doesn't become due.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:48 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My father in law has a Reverse mortgage .He lives alone and has 85 yaers old . The expenses and Taxes and Insurance for that property are too high.How can an old man pay it only with SS check ?.Maybe he can rent his property

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome queen,

If there is a reverse mortgage on the property, then he will not be able to rent off the property. If he does so, the reverse mortgage lender will call his loan due immediately. Your father in law may ask for monthly cash advances from the reverse mortgage lender. This is one of ways of receiving the loan. This will help him in bearing the taxes and insurance of the property.

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