Multiple Reverse Mortgages: What You Need to Know
In most cases, you cannot have more than one of any FHA-backed loan, including a reverse mortgage. However, there are some situations in which you might qualify for a second reverse mortgage.
For instance, if you took out a reverse mortgage on your current home, but then invested a significant amount of money into making important renovations and upgrades, you could feasibly apply for a second reverse mortgage. However, you would need to get enough in the second reverse mortgage to pay the first one off.
The rule of thumb is that you need to be approved for five times the dollar amount of any loan fees to benefit from another reverse mortgage. If your loan had $2,000 in fees, you would need to be approved for at least $10,000. In addition, if you refinance an FHA-backed reverse mortgage through the FHA, you’ll find that the mortgage insurance premium is lower, allowing you to save money. However, this is technically refinancing your existing reverse mortgage, rather than taking out a second one.
Because reverse mortgages are only applicable for a home you live in as your primary residence, and you can only have one primary residence at a time, it is not possible to have more than one concurrent (active at the same time) reverse mortgage.