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.
This top-ranking reverse mortgage lender makes it a priority to earn and keep your trust. Finance of America Reverse has plenty to offer: lump sum, tenure payment and line of credit options; an average closing time of 30 days; and award-winning customer service. According to customers in Kansas City, if you’re unsure of what something means, the team at FAR will go out of their way to explain it to you.
As one of the country’s largest reverse mortgage providers, Liberty Home Equity Solutions has worked with more than 50,000 seniors since 2003, and all of that experience has led to their reputation as industry experts. Offering HECMs and a promise to match or beat all competitors, this lender is an industry favorite. Customers say they love the responsiveness and personal attention provided by Liberty Home Equity Solutions representatives.
This award-winning company prides itself on a 97 percent customer satisfaction rating from in-house surveys. American Advisors Group offers HECMs and an expert staff to assist with the process every step of the way. Customers say that although sometimes the process takes longer than they had hoped, it works out in the end and is well worth the wait.