As of 2022 there is a hybrid reverse mortgage that is available for reverse mortgage borrowers who have been declined for a reverse mortgage due to a low appraisal.
This hybrid reverse mortgage requires partial interest payments for 10 years on a fixed rate basis and after 10 years no more payments are required on the loan for as long as the borrowers keep the loan.
The hybrid reverse mortgage is part forward mortgage and part reverse mortgage. Income qualifying is like a forward mortgage. There is a debt-to-income ratio qualifier since borrowers are required to make monthly payments but again the payments are partial interest and required for 10 years so income qualifying is easier than a conventional loan.
Cash out is even possible on the hybrid loan.
Click here for a video on how the hybrid reverse mortgage loan works and feel free to click on the “tell me your scenario” button in the top right corner of my website to let me know your situation.
Best,
KW