Just Approved: “Drive By” Appraisals for HECM reverse mortgage extended through 2020
Mortgage loan originator: David Chee, CPA, HighTechLending Inc.
Property type: Townhouse in the East Bay.
Loan availability: $453,000,
Available line of credit: $45,000.
Interest rate: 2.310%.
Loan type: Home Equity Conversion Mortgage (HECM), aka Federal Housing Authority reverse mortgage.
Backstory: This borrower did their first HECM reverse mortgage with me in 2018 when the interest rate was 4.764%. I contacted her to let her know interest rates were below 2.50% now and she could receive more money in her growing line of credit. Come to find out she had some underlying health issues and was nervous about having an appraiser come into her home. I let her know that the FHA is accepting drive-by appraisals.
As a result of COVID-19, the FHA is accepting drive-by appraisals through Dec.31. This means appraisers do not need to enter your home and only need to take an exterior photo from the street. This allows appraisers to observe prudent physically distancing practices while conducting an appraisal. We recently closed her HECM reverse mortgage, and she is very happy to have a low interest rate and more in her available line of credit for her future needs.
Some people have anxiety about strangers entering their home due to COVID-19, pets, clutter or other issues. If this has been holding you back, this is a good time to consider a drive by appraisal for a reverse mortgage. Normally, appraisers must do an interior inspection and take photos of every room, including the attic, crawlspace and all sides of the home. They must also verify that the water heater is double strapped, smoke and CO2 alarms are present, among other things.
All this and more are not required during...