What Are HUD Minimum Property Standards for a Reverse Mortgage?

Video Transcript

"Hi, my name is Bob Dixon and I'm better known as Mr. Reverse Mortgage, and I'm a former HUD agency counselor for reverse mortgages. And I have done reverse mortgages in probably every state of the USA, including Alaska and Hawaii, and seen every type of reverse mortgage. Now the question today is what are the HUD minimum property standards for reverse mortgage? Well, an FHA inspector or appraiser is going to come to your property and inspect the properties. If there is any defects in the property he is going to let you know at that point in time but it is pretty much common sense. If you have a hole in your roof, they are going to have a problem with that. If you don't have indoor plumbing, they are going to have a problem with that but that is not going to keep you from getting a reverse mortgage. What they are going to do is figure out what that is going to cost to make those repairs and they'll take that money that you would normally be getting from the reverse mortgage and then put that into what is called the set aside account. As those repairs are made they take that money from the set aside account and use that to pay for the repairs. Now if there is any additional money left over in that set aside you can take that lump sum or add that to your credit line or however you wish once the repairs are completed but the FHA inspector or appraiser is going to be the one to tell you if there is any defects and it is pretty much common sense. You would know if your property is in need of any major repairs. Now if you just got a little bit of paint or your carpet is bad that is not going to keep you from getting a reverse mortgage. Common sense is going to tell you this and I think you'll be able to figure it out. Again an FHA appraiser is going to have all that listed for you. Again my name is Bob Dixon and I'm Mr. Reverse Mortgage. Have a great day."