How to Increase the Loan Amount on a Reverse Mortgage

• 1). Determine whether you are eligible for a refinance. If you currently have a reverse mortgage that does not pay you a large enough monthly payment, you'll need to convince a new (or current) lender that either the FHA guidelines now allow for larger loan amount, or your property has appreciated enough to qualify your home for a larger reverse mortgage.
  
  
• 2). Check your credit. See the resources bar for a free copy of your report. If your credit score has fallen since your last refinance, it would behoove you to improve your score and report by cleaning up delinquent debts, paying past due balances, and reducing your debt load before you move forward with another refinance. If you approach a lender with a mediocre score, you may get a larger payment on a reverse mortgage, but you'll likely end up paying more in interest.
  
  
• 3). Appraise your property. A private appraisal will cost between $150 and $300. However, if you use an online valuation site--like the one listed in resources--you can get an approximate value of your home. A new refinance will require a new appraisal (especially if the new loan amount relies upon a higher market value), but you'll want to have a fairly clear idea as to the value of your home before you move forward with the refinance process.
  
  
• 4). Find a lender. Start with the Federal Housing Administration's list of approved reverse mortgage lenders (see resources). It's best to find a lender who resides in your state or community--this way you'll have face to face contact with the lender. Narrow down your options to three to four lenders, then search the Better Business Bureau to make sure there are no complaints of unethical behavior by any of your options. Last, call all potential lenders to confirm they do indeed refinance properties like yours for the loan amount you seek.
  
  
• 5). Choose a lender and refinance for a higher loan amount. Make sure to follow the refinance process closely--keep and read all disclosures sent to you (either by mail or in person), make sure to ask questions when documents are unclear, and always retain a lawyer in case you need specific legal help deciphering any complex documents or issues.