Updated over 4 years ago on . Most recent reply
Reverse Mortgage - Pull Out Money
My Dad is 75. He lives in a home with a reverse mortgage. His home is valued at $300,000 and the payout on the reverse mortgage is $120,000. I would like to pull some of the equity, give him some money, make some updates and start generating some income maybe with Airbnb or rental. Can this happen, or can someone point me in the right direction to find out if and how to do this? TIA for your help.
Most Popular Reply
You can refinance in his name to conventional cash out IF he can qualify. Typically people chose reverse because their income only qualified for tax and insurance. Or he can sell the property to you and you get a new purchase loan. Conventional Lender will likely see it is not an arm's length transaction and be more careful to get all the paperwork and not waive any conditions. There are other loan programs you may qualify for. Where is Dad planning to live?