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Reginald Said:

can a reverse mortgage be taken out on a co-op apartment?

We Answered:

Good question......typically co-ops do not meet the criteria for either a HECM (home equity conversion mortgage) or Fannie Mae HomeKeeper program. They are acceptable in some States (New York for one) under the lenders proprietory product, sometimes called Cash Accounts.....Jumbo Reverse Mortgage. You would want to check with a Broker in your area who handles products Financial Freedom or Bank of New York. Hope this helps.
Stephen
ReverseMortgageSpecialist.com

Marie Said:

My mother and I are both on the deed to our house. She is 90. Can we still apply for a reverse mortgage?

We Answered:

Hi Bobby,

You have to love these open forums....sometimes you get everything but the answer to your question.

The answer to your question is YES. What would happen is you can still stay on title and Mom would be given a "Life Estate". What this means is Mom retains all her legal rights to the property and at her demise the house automatically goes to you, bypassing probate, and you get the house at what is known as the stepped up value. What that means is you get the house at the current market value instead of what Mom paid for it. The benefit here is that you will not have exposure to Capitol Gains taxes.

This is a very simple procedure, and one that is very common in situations such as yours. The Lawyer simply writes up a Life Estate, you and Mom sign, and it gets recorded along with the Reverse Mortgage.

Bobby for disclosure purposes....I work for EverBank Reverse Mortgage...a Nationwide Reverse Mortgage Bank, and all we do is Reverse Mortgages. I am also the Producer/Host of a daily radio program in the Boston Market called Senior Solutions Radio. If you have any other questions, or if you would like me to assist you and Mom in the Reverse Mortgage, simply let me know. Thank you and I hope this helps.

Regards,
Stephen Greenberg

Jesus Said:

if i apply for reverse mortgage do i need equity on my property?

We Answered:

Yes,, you need 40% and can borrow up to 80% of the value (total liens).