Mountain and rural property
Wells, septic, acreage and manufactured homes.
Most reverse mortgage advice is written for a house on a city lot. Homes between Sandy and Government Camp are different, and the appraisal is where those differences show up. Here is what I walk through before anyone orders one.
First: is it your principal residence?
A reverse mortgage is only for the home you live in most of the year. Vacation cabins, second homes and short term rentals do not qualify. A two to four unit property can qualify when you live in one of the units. If you are moving up the mountain full time, a HECM for Purchase can buy that home.
Manufactured homes
Many qualify when the home was built after June 15, 1976, sits on a permanent foundation on land you own, is classified as real property, and still carries its HUD certification label and data plate. It generally must not have been moved from its first installation site. Missing labels can sometimes be replaced, so ask before you give up.
Wells
The appraiser confirms a safe, working water supply. A water quality test is common for private wells, and shared wells usually need a written agreement among the neighbors who use it.
Septic systems
The system must work and meet county health rules, including required distances from the well. Signs of failure, like standing water or odors, will come up in the appraisal.
Acreage, barns and shops
There is no single acreage number in the rules I work with. The property must be primarily residential, and the appraiser values the land by comparing similar properties nearby. Hobby acreage is common. An active commercial farm or income producing land is not a fit.
Private roads and access
The home needs legal, year round access. If you share a private road, a recorded easement and a road maintenance agreement are often required. Gathering those early saves weeks.
Flood zones
Homes near the Sandy, Salmon, Zigzag and Clackamas rivers may sit in a mapped flood zone. If so, flood coverage is required and becomes part of what you keep paying, so we look at the map before the appraisal.
Roofs, snow and woodstoves
Heavy snow years show up in roof condition. Woodstoves, older electrical panels and peeling paint on older homes are common appraisal notes. Some repairs must be done before closing, and others can be finished after closing with money set aside from the loan.
Before the appraisal
A short list to gather.
- Your most recent property tax statement
- Your homeowners coverage declarations page
- Any well or septic records, permits or recent service reports
- The road maintenance agreement or easement, if your road is private
- For manufactured homes: the HUD label location, the data plate, and how the home is titled
- A list of repairs you already know about
Common questions
Can I get a reverse mortgage on a manufactured home?
Often, yes, if it was built after June 15, 1976, sits on a permanent foundation on land you own, is classified as real property, carries its HUD certification label and data plate, and has generally not been moved from the site where it was first installed. Homes in parks on rented lots do not qualify.
Is there an acreage limit for a reverse mortgage?
There is no single acreage number in the rules I work with. The home must be primarily residential, and the appraiser decides how the land is valued compared with similar properties nearby. Working farms and income producing land are a different story.
Does a private well disqualify my home?
No. Expect the appraiser to confirm the home has a safe, working water supply. A water quality test is common, and the well and septic system need to meet local health rules and required distances from each other.
Does a vacation cabin qualify?
No. The home must be your principal residence, where you live most of the year. If you plan to move to the mountain full time, a HECM for Purchase can be a way to buy that home.
What if the appraisal calls for repairs?
Some repairs must be finished before closing. Others can be completed after closing using money set aside from the loan for that purpose. I will tell you which is which before the appraisal, so there are fewer surprises.
Plain language guides
Keep reading.
Oregon reverse mortgage summary. At the end of the loan, some or all of the equity in the home may no longer belong to the borrower, and the home may need to be sold or the loan repaid from other assets. The lender charges an origination fee, a mortgage insurance premium, closing costs or servicing fees, which may be added to the loan balance. The loan balance grows over time and interest is charged on the outstanding balance. The borrower keeps title and is responsible for property taxes, insurance, maintenance and related taxes, and failing to pay them may make the loan due immediately and may subject the property to a tax lien or foreclosure. Interest is not deductible on an income tax return until all or part of the loan is repaid. A home with a reverse mortgage taken out on or after January 1, 2017 is not eligible for Oregon's Senior and Disabled Property Tax Deferral Program.
Not a commitment to lend. All loans subject to credit approval.
Talk with Becky
I will walk the property questions with you before anyone orders an appraisal.
Call or text me, or send a note with a good time. Bring anyone you want in the room. Nothing is decided in the first conversation, and you will leave with answers in writing.