Kansas City was named one of the top 50 cities to retire, and by 2020 there will be about 300,000 KC residents aged 65 and older. A reverse mortgage gives those 62 and older the ability to convert their home equity into cash, securing extra income for themselves to cover costs. Our partners at ConsumerAffairs reviewed the best reverse mortgage lenders in Kansas City to help you find a reputable company with clear, low fees and interest rates.
How to choose a reverse mortgage lender in Kansas City
With its low cost of living and new developments, Kansas City is a top contender for retirees. Suburbs like Prairie Village and Leawood, which offer great highway access, controlled traffic and beautiful landscapes, are among the best neighborhoods to retire.
In Kansas City, only six percent of homes have a negative home equity rate, which is calculated by subtracting the amount you owe on your home from its total market value. Having equity is sort of like a forced savings account that amasses value as you pay more into it, giving you the ability to tap into it if necessary.
Because the houses here are often expensive and mortgages shrink as you pay them, homeowners in KC often have more equity that they can tap for a reverse home mortgage in Kansas City. But it’s important to know that in Kansas, each county is limited to the FHA national average for mortgage limits, meaning that homes in high-value ranges may not qualify. If that’s the case, you can opt for a private lender that features high or no limits. Missouri limits vary by county.
Here’s a further breakdown of qualifications for reverse mortgages in Kansas City by state:
Own your home
Own your home
Occupy your home
In addition, a reverse mortgage must be the only lien on a property. As a reverse mortgage borrower, you will be responsible for staying up to date on all taxes and insurance as well. You are only permitted to live outside of your home for a total of 12 months, so if the unexpected happens and you find yourself in an extended care situation, you should talk to your lender.
Even if you fit these qualifications, you still may not be eligible to receive a reverse mortgage. Here are other factors lenders look at before approving this type of loan:
Ability to pay future housing costs
Federal debt history
Property eligibility and condition
If you do qualify for a reverse mortgage in Kansas City, it’s important to find the best company for you at the best cost. Most insurance premiums are similar from lender to lender, but the additional fees can vary greatly, according to the Federal Trade Commission. Like any loan, comparison shop your way through companies to find what works best for you.
Finance of America Reverse focuses heavily on customer interaction and satisfaction. Many reviewers appreciate having real-life conversations with experts who help them find the best loan for their needs. FAR offers a wider variety of loans than its competitors and maintains an A+ rating from the Better Business Bureau.
As one of the nation’s largest and most experienced lenders, Liberty Home Equity Solutions is a trusted name in the industry. It charges no up-front lender fees, and as a member of the National Reverse Mortgage Lenders Association, it adheres to industry practices. It has directly funded $7.5 billion in loans for 60,000+ borrowers.
American Advisors Group maintains a 97% customer satisfaction rating and is fully approved by the Department of Housing and Urban Development. AAG offers a variety of mortgage options and has a jumbo reverse mortgage for those with high-value homes. Its employees go through an extensive training and licensing process to gain in-depth industry knowledge.
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