Author: janjordan

What Happens to a Home After a Reverse Mortgage Borrower Passes?

reverse mortgage loveland fort collins greeley longmont westminster coloradoOne of the most common questions about reverse mortgages is what happens to the home after the homeowners pass away. Will the bank take the house? Can it still be passed down to family? Will the heirs be responsible for the loan? These are important and valid concerns, so let’s go over what actually happens in a clear and straightforward way.

When the last surviving homeowner passes, the home becomes part of the estate or is transferred according to the homeowner’s will. At that point, there are three primary options for the heirs or estate:

  1. Pay off the remaining balance
    This option depends on how much equity is left in the home and the financial resources available to the heirs. In some cases, a life insurance policy may be used to help with the payoff. Because reverse mortgages are FHA-insured, the amount required to repay the loan will never exceed the market value of the home—even if the housing market has declined.

  2. Obtain a conventional loan
    If the heirs want to keep the home, they may be able to refinance it with a traditional mortgage. Many mortgage brokers are familiar with this process and can help identify the best path forward based on the situation.

  3. Sell the home
    If there is no plan or desire to keep the property, the heirs can sell the home. The reverse mortgage loan is repaid through the sale, and any remaining equity after the loan is satisfied goes to the heirs. If the sale doesn’t fully cover the loan, the FHA insurance covers the difference—no additional money is owed.

If there are no heirs or the heirs decide they do not want the home, they are under no obligation to take further action. There is no personal liability for the loan.

It’s also helpful to know that lenders typically allow up to one year to settle the estate and manage the transition. This grace period is usually provided in three-month increments and extended as long as communication with the lender remains open and progress is being made.

Understanding the post-mortgage process helps families plan more effectively and removes some of the uncertainty that can come with estate planning. A reverse mortgage doesn’t prevent a home from being passed on—it simply adds structure to the process and allows families time to make informed decisions.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.

Should You Use Home Equity in Retirement?

Colorado Reverse Mortgage

Did you know that your home equity can play a meaningful role in reducing the overall risk of your retirement plan? For years, the home was often left out of the financial planning conversation, but that’s starting to change. More retirement experts are recognizing that using home equity through a reverse mortgage can be a valuable and underutilized strategy.

Let’s take a quick look at where many seniors currently stand when it comes to retirement readiness:

• Only 22 percent of workers are very confident they’ll have enough money saved for retirement
• 45 percent of Americans have no retirement savings at all
• Women are expected to live an average of 20 years beyond retirement, two years longer than men
• The average retiree will face approximately $220,000 in out-of-pocket healthcare costs
• Medicare typically covers only 62 percent of senior healthcare expenses, leaving 38 percent to be paid out-of-pocket
• 36 percent of near-retirees will rely solely on Social Security for income

Given these realities, a reverse mortgage can help address financial gaps in retirement. How the funds are used is entirely up to the borrower. Whether taken as a monthly payout, a line of credit, or a combination of both, reverse mortgage funds can be integrated with other retirement tools to provide added financial stability during the retirement years.

Reverse mortgages are available to homeowners aged 62 and older, including married couples. These loans allow borrowers to live mortgage payment free while continuing to own their home. Because reverse mortgages are federally insured and non-recourse, neither the borrower nor their heirs will be responsible for repaying more than the home is worth. There are also options for adult children or family members who may wish to keep the home in the family after the borrower passes.

For seniors looking to strengthen their retirement strategy, home equity may be one of the most overlooked—but powerful—tools available.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.

Reverse Mortgage Can Help Coloradans Retire in Comfort

reverse mortgage loveland fort collins greeley longmont westminster coloradoFor many who recall the early concerns surrounding reverse mortgages, the words “comfort” and “reverse mortgage” might not seem like a natural pair. But that perception has changed.

Since the FHA and HUD introduced regulatory improvements in 2015, reverse mortgages have become a much more stable and reliable option. Today, they’re gaining traction as a creative financial tool—whether the goal is to increase monthly cash flow, strengthen retirement savings, or even buy a new home.

Here are three ways a reverse mortgage can help make retirement more comfortable:

  1. Supplement retirement income
    About 36% of baby boomers are planning to rely solely on Social Security during retirement. For those in this group, a reverse mortgage can provide an additional, non-taxable income stream by tapping into their home’s equity. Funds can be distributed as monthly payments or accessed through a line of credit. Because the loan isn’t due until the borrower passes away or permanently moves out of the home, it allows retirees to stay in their home while reducing financial stress.

  2. Protect and enhance a retirement portfolio
    Even for those with solid retirement plans in place, a reverse mortgage line of credit can be a useful way to increase financial flexibility. Some retirees use it to delay drawing Social Security in order to maximize their benefits. Others use it as a buffer to allow investments more time to grow. Financial and retirement planners are increasingly looking at reverse mortgages as a strategic part of a long-term wealth management plan.

  3. Purchase a retirement home
    It’s still not widely known, but a reverse mortgage can be used to buy a new home. This option is particularly helpful for those wanting to move into a senior-friendly community, relocate closer to family, or finally settle into their dream home. The Reverse Mortgage for Purchase program makes it possible for retirees to buy a home without taking on monthly mortgage payments—opening doors that might have seemed out of reach.

Reverse mortgages are specialized loans available to homeowners age 62 and older. They allow seniors to access home equity without monthly mortgage or loan payments. Funds can be received as a lump sum, monthly income, a growing line of credit, or used to purchase a new home. If you’re thinking ahead to retirement, working with a knowledgeable specialist can help tailor this option to your needs and goals.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.

Understanding the Required Counseling for a Reverse Mortgage

reverse mortgage loveland fort collins greeley longmont westminster coloradoBefore moving forward with a reverse mortgage, all applicants are required to complete a counseling session with a HUD-approved agency. This step is mandated by the Federal Housing Administration (FHA) to ensure that borrowers fully understand how a reverse mortgage works and how it may impact their financial future.

This counseling isn’t meant to convince anyone to move forward or to talk them out of it. Instead, the goal is to provide clear, unbiased education so that borrowers can make an informed decision with confidence.

What to Expect from the Counseling Process

The first step is for the borrower to schedule a session directly with a HUD-approved counseling agency. While your lender cannot initiate or attend this meeting, they can offer a list of agencies for you to contact. Sessions can take place either over the phone or in person. HUD generally recommends face-to-face meetings when possible, but both options are valid.

Before your appointment, the counseling agency will send you a packet of materials to help you prepare. These documents outline the key components of a reverse mortgage and give you a head start on the conversation.

During your counseling session, you’ll have the opportunity to:

  • Discuss your current financial situation and long-term needs

  • Review your reasons for considering a reverse mortgage

  • Ask any questions you may have

  • Explore both the benefits and drawbacks of a reverse mortgage

  • Learn about alternative options that may also meet your needs

The counselor’s role is purely educational. They do not represent the lender and are not trying to sell or promote the loan product.

What Happens After the Session?

Once your session is complete, you’ll receive a Certificate of Completion. This document confirms that you’ve fulfilled the counseling requirement and have been fully briefed on the fundamentals of a reverse mortgage. A copy of the certificate will also be sent to your lender, allowing the loan process to move forward.

Most agencies also follow up with borrowers to ensure that all questions have been answered and to provide additional support if needed.

Why Counseling Matters

Reverse mortgages are an individualized financial tool, and no two borrowers are the same. This required counseling session helps make sure that every applicant enters the process with clarity, understanding, and the ability to make the decision that’s right for them.

If you’re thinking about a reverse mortgage, completing the counseling session is an important first step—not just because it’s required, but because it empowers you to move forward with confidence and peace of mind.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.

Reverse Mortgage in Colorado: 5 Essential Facts You Should Know

Reverse Mortgage Loveland Fort Collins ColoradoIf you’re approaching age 62, chances are you’ve already come across the topic of reverse mortgages, whether through mailers, online ads, or conversations with friends. Designed to help retirees achieve financial flexibility and peace of mind, this loan option can feel either inviting or overwhelming depending on how it’s presented.

As with any major financial decision, it’s important to focus on the facts—not the marketing. Here are some straightforward points to help you understand what a reverse mortgage actually involves.

1. Married Couples Can Both Be on the Loan

If both spouses are age 62 or older, they can be listed as co-borrowers on the reverse mortgage. This is a key protection—if one spouse passes away or moves permanently into an assisted living facility, the other can continue living in the home without disruption. The agreement remains unchanged as long as one borrower continues to occupy the home as their primary residence.

2. No Monthly Mortgage Payments

One of the most significant benefits of a reverse mortgage is that borrowers are not required to make monthly mortgage payments. Whether it’s a standard reverse mortgage or one used to purchase a home, the financial responsibility is limited to things like property taxes, homeowner’s insurance, HOA dues (if applicable), utilities, and basic upkeep. As long as the home remains your primary residence, no mortgage payments are due.

3. No Impact on Social Security, Medicare, or Pensions

Funds received from a reverse mortgage are considered loan proceeds, not income, and are therefore tax-free. This means they do not affect Social Security benefits, Medicare eligibility, or pension income. You also won’t need to report them as income on your tax returns.

4. You Keep Ownership of Your Home

Taking out a reverse mortgage does not mean giving up your home. The title stays in your name, and ownership remains entirely with you. Accessing the equity in your home doesn’t change who owns it—it simply allows you to use your home’s value to support your financial goals.

5. Flexible Options for Accessing Funds

Reverse mortgage funds can be accessed in several ways: as monthly payments, a line of credit, a lump sum, or as part of a home purchase. You can use the funds however you wish—whether it’s for travel, home upgrades, medical expenses, or just everyday living.

Through the Reverse Mortgage for Purchase program, you can even buy a new home and close both the home purchase and the reverse mortgage loan at the same time. This option is especially appealing for those wanting to downsize, relocate closer to family, or finally move into their dream retirement home.

Reverse mortgages are available to adults 62 and older throughout Colorado. If you’re considering this option, reach out to a trusted reverse mortgage lender to learn more and explore whether it’s the right fit for your needs and lifestyle.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.

Why So Few Seniors Use a Reverse Mortgage to Buy a Home

reverse mortgage loveland fort collins greeley longmont westminster coloradoIt might come as a surprise, but only about 2–3% of older Americans use the Reverse Mortgage for Purchase option when buying a home. Even though this program is available, most seniors still rely on traditional financing or choose to pay in cash. So what’s holding them back?

Surveys and studies have identified three primary reasons:

1. They Don’t Know It’s an Option

Many seniors simply don’t know that a reverse mortgage can be used to purchase a home. Unfortunately, this is common. Real estate agents and lenders often aren’t familiar with the program or don’t know enough about it to recommend it. If you’re over 62 and thinking about buying a home, be sure to ask about the Reverse Mortgage for Purchase option. And if your current lender or agent can’t provide clear information, reach out to a reverse mortgage specialist who can.

2. Lack of Guidance from Real Estate Agents

Even when the option is mentioned, many real estate agents don’t have enough knowledge to walk a buyer through how it works. If you find yourself in this situation, don’t hesitate to ask for a referral to someone who specializes in reverse mortgages—or take the initiative to find a trusted expert yourself. You can still work with your real estate agent. 

3. Concerns About the Down Payment

Another reason some seniors pass on this option is the required down payment. The amount depends on a few factors, including the home’s purchase price, the borrower’s age, and current interest rates. While the idea of a larger down payment might seem like a hurdle, it’s important to remember that with a reverse mortgage, there are no monthly mortgage payments, which can offer substantial financial relief in the long term.

Basic Requirements to Qualify

To be eligible for a Reverse Mortgage for Purchase, you must:

  • Be 62 or older (each borrower listed on the title must meet this requirement)

  • Be purchasing a primary residence

  • Have your down payment (“required investment”) from a HUD-allowable source — such as the sale of another home, personal savings held for 90+ days, a gift, or inheritance (borrowed funds are not allowed)

If you’re considering purchasing a new home in retirement, don’t overlook this powerful financing tool.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Erie, Dacono, Fort Collins, Loveland, Greeley, Longmont, Boulder, and surrounding areas across Colorado’s Front Range, as well as the Cheyenne and Laramie communities in Wyoming. Reach out today to learn more about how a reverse mortgage could help you purchase your next home.

What to Expect from a Reverse Mortgage Appraisal

reverse mortgage loveland fort collins greeley longmont westminster coloradoGetting something you care about evaluated under a microscope doesn’t always sound appealing—but when it comes to reverse mortgage loans, the appraisal process is both essential and beneficial. Not only is an appraisal required by lenders, it also plays a key role in determining how much funding you may be eligible to receive. The good news? The process is straightforward and easy to navigate.

Step 1: Start with Your Application

Once you’ve spoken with a qualified reverse mortgage specialist and decided to move forward, you’ll submit your application. From there, the lender will arrange for a professional appraiser to evaluate your home. The appraiser will contact you directly to schedule a convenient time for the visit.

Step 2: The Three-Part Appraisal Process

The appraisal itself involves three main stages: the inspection, the research, and the final report.

Inspection

During the scheduled visit, the appraiser will walk through your home—often taking photos and notes about features that contribute to its value. If any issues are spotted, such as needed repairs, they may also be documented. This gives you a heads-up on anything that could impact the appraisal and possibly a chance to correct it.

Research

After the visit, the appraiser will dig into various data sources to help determine your home’s current value. This research typically includes recent home sales in your area, multiple listing services, tax assessor’s records, and other relevant public data. These details help paint a complete picture of your home’s market value.

The Final Report

All findings from the inspection and research are compiled into an official appraisal report. This document includes photographs (if taken), property details, and comparable sales. The report is submitted to your lender, who will provide you with a copy along with updated reverse mortgage figures based on the appraised value.

Get Ready in Advance

You can take simple steps to prepare your home for an appraisal and make the process even smoother. For helpful tips, check out my article on how to prepare your home for an appraisal [click here].

Understanding the Bigger Picture

A reverse mortgage is a unique loan available to homeowners age 62 and older, including married couples. It allows you to tap into your home’s equity while eliminating monthly mortgage or loan payments. Funds can be accessed in various ways: a lump sum, monthly payments, a line of credit, or even to purchase a new home.

If you’re considering your options, talk with your reverse mortgage specialist. Together, you can explore creative solutions tailored to your lifestyle, financial needs, and future plans.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.

How Seniors in Colorado Are Using Reverse Mortgage Funds to Enjoy Retirement

reverse mortgage loveland greeley fort collins longmont boulder coloradoOne of the greatest benefits of a reverse mortgage is the flexibility it offers—borrowers can use the funds however they choose, all while living without the burden of a monthly mortgage payment. In Colorado, where retirees are living more active lives than ever, that flexibility goes a long way. Whether it’s traveling, updating the home, or spending more time with loved ones, seniors are using reverse mortgage proceeds to truly enjoy their golden years.

With cities like Fort Collins and Loveland regularly ranking among the best places to retire—along with Firestone, Parker, and Louisville—it’s easy to see why so many older adults are choosing to settle down and live well right here in Colorado.

Here are three meaningful ways retirees are putting their reverse mortgage funds to use:

1. Taking That Dream Vacation

After decades spent working, saving, and raising families, many seniors are finally making time for that once-in-a-lifetime trip. Reverse mortgage funds can make it possible to book that long-awaited cruise, European tour, or national park adventure. These experiences become harder to plan with age, so taking the opportunity now makes for an exciting and rewarding way to celebrate retirement.

2. Reconnecting With Loved Ones

Travel expenses often stand in the way of meaningful visits, especially as airfare, lodging, and gas prices rise. Some retirees are using their reverse mortgage funds to reconnect with family members they haven’t seen in years—whether it’s visiting grandchildren across the country or reconnecting with old friends. It’s one of the most heartfelt and rewarding uses of the funds.

3. Updating or Repairing the Home

After a lifetime of caring for others, it’s common for seniors to realize their own homes could use some attention. Tapping into home equity with a reverse mortgage (without taking on new monthly payments) gives homeowners the chance to make needed repairs or finally tackle long-desired upgrades. From practical fixes to more luxurious additions like a sunroom or kitchen remodel, improving the home is a smart and satisfying use of the funds.

Reverse mortgages are available to homeowners aged 62 and older. Backed by the FHA, this loan offers flexible options: a lump sum, monthly payments, or a growing line of credit. And with safeguards like required third-party counseling, borrowers can make informed decisions with confidence.

For those looking to buy a new home instead of staying in their current one, a reverse mortgage for purchase is also an option—opening the door to a fresh start, without a monthly mortgage payment.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado.  Click here to contact them and learn if reverse mortgage is right for you.

How a Reverse Mortgage Can Help Seniors Navigate Divorce

reverse mortgage loveland fort collins greeley longmont westminster coloradoDivorce among seniors is becoming more common. With retirement often lasting decades rather than just a few years, many people are choosing to make the most of their later years, even if that means making a major life change.

While the emotional side of a divorce can be difficult, the financial aspects can be just as complex. One of the biggest assets often involved is the home, which may be fully paid off or have significant equity. For individuals aged 62 and older, a reverse mortgage can offer a helpful solution for dividing assets and maintaining financial independence.

Scenario 1: One Spouse Stays in the Home

Instead of selling the home and dividing the proceeds, one spouse could choose to remain in the home and take out a reverse mortgage. The proceeds from the loan can be used to pay the other spouse their share of the equity, allowing both parties to move forward.

If the divorce is finalized before the reverse mortgage closes, the financial settlement can often be incorporated into the loan itself. In this case, the reverse mortgage becomes part of the broader divorce agreement. The person who remains in the home will still be responsible for ongoing housing expenses, including property taxes, homeowner’s insurance, and maintenance.

Scenario 2: Transitioning to a Single Income

Going from two sources of income to one can be a major financial shift, whether it’s from wages, Social Security, or pensions. Securing the home in the divorce can provide a foundation for stability. After the divorce is finalized, the single owner can take out a reverse mortgage on the home to create cash flow.

Funds can be accessed in monthly installments, as a line of credit that grows over time, or as a lump sum—depending on what fits best. If moving is preferred, a reverse mortgage for purchase could be used to buy a new home, often expanding your range of options. Either way, you’ll enjoy the benefit of not having a monthly mortgage payment.

Exploring Your Options

If you’re going through a divorce or considering one, a reverse mortgage may be a practical financial option. Reach out anytime to learn more about the process.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado.  Click here to contact them and learn if reverse mortgage is right for you.

Can Your Home Qualify for a Reverse Mortgage? Let’s Find Out

What Types of Homes Qualify for a Reverse Mortgage?

Reverse mortgages are a unique loan option available to homeowners aged 62 and older. This flexible financial tool is used by a wide range of individuals — from those needing to supplement a fixed income, to retirees looking to protect their assets, or even those wanting to buy a new home in retirement.

But while reverse mortgages can serve many purposes, there are specific requirements when it comes to the type of property involved.

What Types of Homes Are Eligible?

According to the Federal Housing Administration (FHA) under HUD, the home must meet certain criteria:

  • A single-family home

  • A 2- to 4-unit property, as long as the borrower occupies one of the units

  • Select condominiums and manufactured homes that are HUD-approved

For those using a Reverse Mortgage for Purchase, the property must be a completed single-family or 2–4 unit home with a Certificate of Occupancy in place.

When Might a Home Not Qualify?

There are a few scenarios where a property may not meet reverse mortgage guidelines:

  • If the home has very little equity, it may not qualify — although properties with existing mortgages often can.

  • The property must be in good condition and well-maintained. Delinquent property taxes or neglected upkeep can be disqualifying factors.

  • The home must be your primary residence. Second homes, vacation homes, or investment properties typically do not qualify.

The Bottom Line

Reverse mortgage funds can be accessed in several ways — as a lump sum, monthly payouts, line of credit, or even to purchase a home. If you’re considering this option, speak with a reverse mortgage specialist. They can help explore creative solutions tailored to your financial goals and personal needs.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado.  Click here to contact them and learn if reverse mortgage is right for you.