Reverse HUD Mortgages and 2nd Mortgages

Q. A senior relative is considering a reverse mortgage - They have a $25K equity line- Will HUD request information about that credit line and/or insist it be paid off in the new reverse HUD Mortgage and doesn't HUD have a provision that you cannot take a second mortgage?

A. The reverse mortgage will need to be the only lienholder, so yes, they will require that any existing debt on the property be paid off. Typically, money from the reverse mortgage is used to do so at closing.

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