Client lived in their home for 15 years and then rented it out. They downsized and moved into a mobile home because of its proximity to a volunteer opportunity they wanted to serve with. Now three years later, the husband’s disability has worsened and the wife has tired. Their tenant gave notice so they’ve decided to move back into their single family home as their primary residence. They will be moved back into the home before applying for the reverse mortgage. This sounds acceptable to me. Do you see any objections or problems? Other than a letter of explanation and making sure their driver’s licenses reflect the subject property, is there anything else we should be concerned with?
Sounds like you’re on the right track, owner occupancy as you know is mandatory for a HECM. The borrower must be occupying the property as their primary prior to the time of application, we are typically looking for a year, anything less requires an exception. To support the exception an LOE, evidence they are now occupying, clarify if they own other property, build on providing proof they intend to use the subject as their primary. Let us know if you need anything else.