So far with the Reverse Mortgage 101 Series we have looked at different areas of reverse mortgages including the benefits, the process, and qualifying for a reverse mortgage. One of the steps in the reverse mortgage process is the appraisal. Why is the appraisal important?

The amount you receive from your reverse mortgage is determined by a few things:

  • Your age
  • The type of reverse mortgage you choose
  • Current interest rates
  • The appraised value of your home

The appraisal of your home is an important part to determine the amount you receive from your reverse mortgage. Here is some useful information about an appraisal with One Reverse Mortgage.

First, you need to know the steps of the appraisal.

  1. The appraiser comes to your home and performs and inspection.
  2. The appraiser will research similar homes in the area and compare recent sales to determine a fair market value.
  3. The appraiser will give a final report with all of the data and research and give an “opinion of value.”

Does One Reverse Mortgage conduct the appraisal?

No. By law, appraisals must be completed by an independent third party. One Reverse Mortgage uses an Appraisal Management Company (AMC) to act as an intermediary between One Reverse Mortgage and the appraiser.

How is an appraiser selected?

The Appraisal Management Company (AMC) will select an appraiser familiar with your area to complete the inspection and report. One Reverse Mortgage cannot have direct contact with the appraiser.

Can clients ever choose their own appraiser? Why or why not?

No. The Appraisal Management Company (AMC) manages appraisals and determines who conducts the appraisals. Due to recent Wall Street and consumer protection reforms, the Federal Housing Administration (FHA) does not allow anyone to choose their own appraiser.

Are there fees associated with the appraisal?

Yes. Fees are charged by a licensed, certified appraiser for an official opinion of the market value. These fees may vary and are paid to the outside appraisal company. If your loan allows for it, these fees can be rolled into the transaction.

Does One Reverse Mortgage make any money off of the appraisal?

No. We can never charge more than the actual cost of the appraisal fees.

Does One Reverse Mortgage make any money if a loan doesn’t close?

No. there is no benefit for the company if a loan cannot be processed because of a low appraisal.

When does an appraisal expire?

Generally, appraisals for Reverse Mortgages are valid for 4 months from the date of the appraisal until the date the loan closes.

If you have any further questions about the appraisal process with One Reverse Mortgage you can get a hold of one of our licensed experts at (800) 401-8114. A licensed expert can answer any questions you may have.


Kristen Curzytek is a writer for Retiring Wise, the official One Reverse Mortgage blog.