Reverse Mortgage Question

From what I know of these products, a relative of mine might be a good candidate for one. I assume the process begins with establishing a value of the property. Who does the appraisal? Assuming it’s the lending institution, do it secure multiple appraisals? Are these appraisals negotiable or is it a take it or leave it deal? Does it pay to approach several lending institutions. And other than establishing basic ground rules, what’s the Federal government’s role?

It certainly can’t hurt to shop around. I don’t know how they handle appraisals, but it’s unlikely that a lender would want to see more than one.

The federal government is involved in that they limit these products to people over 62.

The Federal Government is involved because reverse mortgages are FHA products.
There are several types of reverse mortgages (not just one), but a qualified broker can explain those to you, along with the advantages and disadvantages of each.

Friedo is correct about the age thing…the youngest borrower has to be at least 62 to qualify. The amount that can be borrowed depends on ages, and the FHA limits in the area where the property is located.

I have never h eard of anyone asking for more than one appraisal on the property unless there was damage that needed to be repaired before the lender would complete the loan. And in that case, what they usually do is a re-inspection tpye of thing, not another full appraisal.