janjordan, Author at Colorado Reverse Mortgage Specialist

Author: janjordan

Should Retirees Use Cash Or A Reverse Mortgage For Purchase When Buying A Home?

Posted on July 25, 2026July 16, 2026 by janjordan

Many retirees dream of paying cash for their next home and living mortgage payment free during retirement. But in today’s housing market, even homeowners with substantial savings or proceeds from the sale of a previous home are finding that strategy can come with tradeoffs.

For some, using all available cash to purchase a home may leave little flexibility for unexpected expenses, healthcare costs, travel, or future care needs.

This is one reason the Reverse Mortgage for Purchase program has gained attention among retirees looking to right-size, relocate, or move closer to family while preserving some of their retirement assets.

Available to qualified homebuyers age 62 and older, the program allows seniors to use a portion of their funds as a down payment while the reverse mortgage provides the remaining amount needed to purchase the home.

Like a traditional reverse mortgage, there are no required monthly mortgage payments as long as the borrower continues living in the home as their primary residence and remains current on obligations such as property taxes, homeowners insurance, and HOA fees when applicable.

For some retirees, this approach can provide the best of both worlds: the ability to purchase a home that better fits their needs while preserving cash for investments, medical expenses, travel, or simply additional financial security throughout retirement.

Reverse Mortgages for Purchase can be used for eligible single-family homes, townhomes, and FHA-approved condominiums, and borrowers always retain ownership and title to the property.

As with any major financial decision, the right approach depends on each homeowner’s goals, finances, and retirement plans. But for many Colorado seniors, a Reverse Mortgage for Purchase has become another option worth considering.

Jan and Kelsey are Reverse Mortgage Specialists serving the Erie, Dacono, Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado, as well as the Cheyenne and Laramie communities of Wyoming. Contact Jan and Kelsey to learn if a reverse mortgage is right for you.

Applying For A Reverse Mortgage? Here’s What To Expect

Posted on July 16, 2026 by janjordan

If you’ve decided to explore a reverse mortgage, understanding the application process can help remove much of the uncertainty surrounding the program.

The first qualification is age. Reverse mortgages are available to homeowners age 62 and older, and in the case of married couples, both spouses generally must meet the age requirement to be included as borrowers on the loan.

The next step is determining whether the home qualifies. Many single-family homes, certain condominiums, manufactured homes, and some multi-unit properties may be eligible, provided the home meets FHA requirements and serves as the borrower’s primary residence. An appraisal is then completed to determine the home’s value.

Borrowers should also expect a financial assessment as part of the application process. Unlike qualifying for a traditional mortgage payment, this review is designed to ensure homeowners can continue meeting obligations such as property taxes, homeowners insurance, and HOA fees if applicable.

An independent counseling session with a HUD-approved counselor is also required before moving forward. This gives borrowers an opportunity to ask questions and ensure they fully understand how the program works, the responsibilities involved, and the options available.

An appraisal is also part of the process. This helps determine the current market value of the home, which is one of the factors used to calculate how much may be available through the reverse mortgage.

Perhaps most importantly, borrowers should never feel rushed or pressured during the process. A reverse mortgage is a significant financial decision, and homeowners should feel comfortable asking questions and taking the time necessary to determine whether the program is the right fit for their retirement goals.

For many Colorado seniors, understanding what to expect ahead of time makes the process far less intimidating and allows them to move forward with confidence if they decide a reverse mortgage is right for them.

When To Consider Refinancing A Reverse Mortgage

Posted on July 9, 2026July 16, 2026 by janjordan

When most people think about refinancing, they think of traditional mortgages. But many homeowners are surprised to learn that reverse mortgages can often be refinanced as well.

As home values rise, interest rates change, and retirement needs evolve, refinancing a reverse mortgage may create new opportunities for some borrowers.

One common reason homeowners refinance is to access additional equity created by increases in home values. Others may refinance to take advantage of lower interest rates or to change how they receive their funds, such as switching from monthly payments to a line of credit option.

Life changes can also play a role. Marriage, divorce, or long-term retirement planning goals may lead some borrowers to revisit their existing reverse mortgage structure.

The refinancing process is similar to refinancing a traditional mortgage and typically includes a new appraisal and updated financial review. Borrowers are also required to participate in independent reverse mortgage counseling to ensure they fully understand the new loan terms and options available.

Homeowners are not required to stay with their current lender and may shop around to determine which lender and loan structure best fit their needs.

Like any refinance, the decision should be based on long-term goals and financial circumstances. For some homeowners, refinancing can create additional flexibility and access to resources during retirement. For others, maintaining the existing loan or exploring other options may make more sense.

A reverse mortgage refinance is not right for everyone, but for the right borrower at the right time, it can be a valuable retirement planning tool worth considering.

How Much Do Reverse Mortgages Really Cost?

Posted on July 2, 2026July 16, 2026 by janjordan

One of the most common questions surrounding reverse mortgages is simple: “What do they cost?”

For many years, reverse mortgages carried a reputation for being expensive. But as more financial planners and retirement professionals have incorporated them into broader retirement strategies, the conversation has shifted from focusing solely on costs to evaluating the overall value they provide.

Like a traditional mortgage, reverse mortgages include familiar closing costs such as lender fees, appraisals, title work, and other third-party expenses. One additional cost unique to FHA-insured reverse mortgages is the Mortgage Insurance Premium (MIP).

While some borrowers initially view this insurance cost as an added expense, it provides protections that are unique in the mortgage industry.

The FHA insurance protects not only the lender, but also the borrower and their heirs. Reverse mortgages are non-recourse loans, meaning borrowers and their families will never owe more than the value of the home, even if housing values decline in the future.

In addition, the insurance guarantees access to funds that remain available under the loan terms, even if home values fluctuate over time.

For many homeowners, the discussion ultimately becomes less about the upfront costs and more about how the reverse mortgage fits into their overall retirement goals. Some use the program to eliminate an existing mortgage payment, others use it to supplement retirement income or preserve investment assets during market downturns.

Like any financial tool, a reverse mortgage is not the right fit for everyone. But understanding both the costs and the protections that come with the program can help homeowners make more informed decisions about whether it belongs in their retirement plan.

5 Quick Facts About Reverse Mortgages

Posted on June 18, 2026July 1, 2026 by janjordan

Reverse mortgages have made a serious comeback in the past several years. After regulation changes were enacted in 2015, the reverse mortgage loan once considered a desperate lifeline is now being used as a retirement tool for even the wealthy. The loans are still only available to seniors 62 and older (including married couples) with the amount of funds available increasing depending on age and appraised value of the home, but now those funds are often being accessed in ways not available before – such as a line of credit or to purchase a home. This really is not your mother’s reverse mortgage, it’s something much more versatile than it was years ago.

Here are some lesser known facts about today’s reverse mortgage:

1.) I’ve said it before and I’ll say it again – the borrower will always remain the homeowner as long as basic responsibilities such as property taxes are paid, homeowners insurance is kept current, and utilities and HOA fees are paid. One of reverse mortgage’s scariest myths has always been that a bank will own the home. This couldn’t be further from the truth. Not only will the borrower remain the homeowner, they will also retain the title.

2.) There are NO mortgage or loan payments. That’s correct. Regardless of how the borrower decides to utilize the reverse mortgage funds, they will not pay a loan or mortgage payment while they remain in the home.

3.) With a Reverse Mortgage for Purchase, borrowers can wrap both the home purchase and the reverse mortgage into the same transaction allowing them to buy their dream home – AND the reverse mortgage will substantially supplement purchasing power allowing a home to be purchased that may have once been out of their price range. When using a Reverse Mortgage for Purchase, the borrower is required to provide some down payment and the reverse mortgage funds will make up the rest of the purchase price.

4.) Married couples can both be on the loan regardless of how the funds are utilized. Another all too common myth is that in the case of a married couple, if one spouse passes away the other spouse will be evicted. When working with a reputable reverse mortgage lender this should never happen. As long as both spouses are 62 or over, they can both be on the loan allowing either borrower to stay in the home until the last spouses passes away or permanently leaves the home.

5.) Heirs are not “saddled” with the debt of a reverse mortgage. After the borrower(s) pass away, there are several options as to what the heirs can do with the home. And in today’s hot housing market, the home may gain equity that can be available to the heirs. Most all reverse mortgages are FHA insured meaning the loan will never exceed the amount of the home sale – even if more is owed, and it also means it will only ever require the amount of the loan even if the home is worth much more when it comes due.

An Overview Of Required Reverse Mortgage Counseling

Posted on June 11, 2026July 1, 2026 by janjordan

The goal of this session is not to steer a potential borrower in one direction or another, but to make sure they clearly understand all aspects of a reverse mortgage.

Here is what you can expect at your counseling session:

The potential borrower will need to schedule an appointment directly with a counseling agency. The lender does not initiate or take part in the session, but can provide you with resources to seek out a counselor. The session will take place in person or over the phone – although the FHA recommends a face-to-face meeting whenever possible.

Prior to your appointment, the counseling agency will provide you with a packet of information to allow you to prepare for the session. During the session the counselor will discuss your immediate and long-term financial needs, your reasons for seeking out a reverse mortgage, address any questions or concerns you may have, and clearly educate you on the process as well as the pros and cons of a reverse mortgage. Again, they are not there to “sell” you on the product, but to educate instead.

Once you have completed the counseling session, you will be provided with a “Certificate of Completion”. This certificate verifies to your lender that you have completed the counseling session and that you understand the essentials of a reverse mortgage. Your counselor will also follow up with you to ensure you have no further needs, questions, or concerns.

Deciding If A Reverse Mortgage For Purchase Is Right For You

Posted on June 4, 2026July 1, 2026 by janjordan

We’re all familiar with the two most common options to purchase a home – take out a mortgage loan or pay cash. But for seniors 62 and over, there’s another option – the Reverse Mortgage for Purchase program (aka HECM for Purchase).

Looking for a home in Fort Collins, Loveland or Longmont, Colorado but finding it’s a bit out of your price range? Because the borrower is responsible for only the down payment on the home and will have NO mortgage payments, a Reverse Mortgage for Purchase can help with this too.

What is needed to qualify for a Reverse Mortgage for Purchase loan?

you must be age 62 or older (each borrower on title must meet this criteria, although others residing in home do not)
the home you are purchasing must be your new primary residence
must meet the FHA’s new reverse mortgage credit and income guidelines
you must have your “required investment” (down payment) from a HUD allowable source. The funds cannot be borrowed. The required investment can come from the sale of a currently owned home or asset, a gift or inheritance, or money you have had for at least 90 days.

Who owns the home that I am purchasing?

As the borrower and homeowner, you will always retain the title to the home, just like any other type of home loan.

What will my personal ongoing obligations be after purchasing a home?

It’s very similar to if you owned your home free and clear – you will NOT have a monthly mortgage payment. But as the homeowner, you will be responsible for paying property taxes, home owner’s insurance, HOA fees when applicable, and basic upkeep including home maintenance and utility payments.

When will the loan become due and payable?

With a Reverse Mortgage for Purchase the loan does not reach “maturity” until:

the last remaining borrower passes away
the homeowner sells the home
the last remaining borrower leaves the home for 12 consecutive months due to illness
the homeowner defaults on property taxes or insurance

Will I need to sell my current home residence to qualify?

Simply put, no. As long as the loan on your current residence is not an FHA loan and your required investment comes from a HUD allowable source, you can keep your current residence – but the new home will need to be your primary residence. Your lender will ensure you are financially stable enough to support the ongoing obligations on all properties you own. If you decide to keep your current residence as an investment, rental, or vacation property – or you are awaiting the sale of home, it is rarely a problem.

What types of properties can I purchase?

Single family homes, town homes, and FHA approved condos are all eligible properties. The home being purchased will need to be the buyer’s primary residence.

Can I use the loan to build a new home?

Previously these loans could not be used as construction loans and homes needed a Certificate of Occupancy before the loan application could be started. This changed in 2017, and now homes in construction are eligible. Read here to learn specifically about obtaining a Reverse Mortgage for Purchase on new construction.

How is the “Required Investment” amount determined?

The “required investment” or down payment is determined by a calculation set by HUD based on:

The lesser of the sale price or appraised value
The age of the youngest of the borrowers
The current expected interest rate

What may disqualify me from a Reverse Mortgage for Purchase loan?

Foreclosures within the past 3 years.
Unresolved bankruptcy
Unpaid Federal obligations – i.e. federal taxes, defaults on prior government backed loans (such as student loans or government backed mortgages)
Income too low to support multiple properties
Unpaid judgments or tax liens

What is the HUD required “Reverse Mortgage Counseling”?

Prior to being approved for a reverse mortgage, HUD’s Federal Housing Administration (FHA) requires each borrow to participate in a counseling session with an approved agency. These third party, not-for-profit agencies are funded by the federal government and work closely with both the FHA and lenders to ensure a smooth process. The goal of this session is not to steer a potential borrower in one direction or another, but to make sure they clearly understand all aspects of a reverse mortgage.

How Reverse Mortgages Are Being Viewed Differently By Today’s Retirees

Posted on May 28, 2026July 1, 2026 by janjordan

For years, reverse mortgages were often misunderstood. Many people viewed them as a last-resort option reserved for seniors facing financial hardship.

That perception has changed dramatically.

Today, more retirees, financial planners, and retirement professionals are recognizing reverse mortgages as one of many tools that can be incorporated into a broader retirement strategy. Rather than simply solving financial problems, reverse mortgages are increasingly being used to create financial flexibility, preserve retirement assets, and help homeowners remain in the homes they love.

As home values have increased and retirement planning has become more complex, many seniors are taking a fresh look at the equity they have built over decades of homeownership. For some, a reverse mortgage can provide an additional source of funds that helps reduce pressure on savings, investments, or other retirement accounts.

We’re also seeing greater collaboration between financial advisors, tax professionals, estate planners, and reverse mortgage specialists. As knowledge about the program has grown, so has the understanding that a reverse mortgage is not a one-size-fits-all solution, but rather a financial tool that may be appropriate in certain situations.

Both traditional reverse mortgages and reverse mortgages for purchase remain available to qualified homeowners age 62 and older.

While a reverse mortgage isn’t right for everyone, the conversation surrounding these loans has evolved considerably. More seniors are discovering that home equity can play an important role in helping them achieve the retirement lifestyle they envision.

If you have questions about how a reverse mortgage might fit into your retirement plans, I’d be happy to help you explore your options and determine whether it makes sense for your unique situation.

Not All Reverse Mortgage Professionals Work The Same Way

Posted on May 21, 2026June 10, 2026 by janjordan

When researching reverse mortgages, many homeowners quickly realize there are countless companies, advertisements, and loan professionals competing for attention. From television commercials to online calculators and direct mail pieces, it can be difficult to know who is actually handling the loan and what kind of experience to expect.

Not all reverse mortgage professionals work the same way.

Many traditional banks and credit unions either do not offer reverse mortgages or only handle them occasionally. In some cases, borrowers may end up working with call centers or representatives who manage many different loan products rather than specializing specifically in reverse mortgages.

Others choose to work with brokers, who act as third parties and shop loans through outside lenders. While that may work well in some situations, it can also add additional layers to the process.

Many seniors instead prefer working directly with specialists who focus primarily on FHA-insured reverse mortgages. Because reverse mortgages are very different from traditional home loans, experience and education can make a significant difference.

For many borrowers, having someone local and accessible to answer questions face-to-face helps create a more comfortable experience during what is often a major financial decision.

Reverse mortgages are available to qualifying homeowners age 62 and older and allow borrowers to access a portion of their home equity while continuing to live in the home. Funds can be received through monthly payments, a line of credit, a lump sum, or used to purchase a home.

Like any financial product, a reverse mortgage is not the right fit for everyone. But understanding who you are working with — and how the process works — can help homeowners make more informed and confident decisions.

How FHA Protections Make Reverse Mortgages Different Than Many People Think

Posted on May 14, 2026June 10, 2026 by janjordan

One of the biggest misconceptions about reverse mortgages is that the borrower or their family could end up owing more than the home is worth.

In reality, federally insured reverse mortgages are specifically designed to prevent that from happening.

Reverse Mortgages, which are officially known as Home Equity Conversion Mortgages (HECMs), are insured by the FHA and include protections for both borrowers and heirs. These loans are considered “non-recourse,” meaning repayment is limited to the value of the home itself.

As long as the borrower continues living in the home and remains current on obligations like property taxes, homeowners insurance, and HOA fees, no monthly mortgage payment is required.

The loan typically becomes due once the final borrower permanently leaves the home or passes away. At that point, heirs generally have two options: keep the home by paying off the loan balance, or sell the property.

If the home sells for more than the loan balance, the remaining equity belongs to the heirs. If the loan balance is higher than the value of the home, FHA insurance covers the difference — not the family.

These protections are especially important as housing markets fluctuate over time. While no financial product is right for everyone, understanding how reverse mortgages actually work can help retirees and their families make more informed decisions about retirement planning.