Acres and Acres of Home Love - Are we eligible for a Reverse Mortgage Loan?
Lonnie and Kay couldn’t imagine selling the family farm. With 40+ acres to maintain, they wondered how to stay without exhausting themselves, and if a reverse mortgage could help them keep the land.
The Situation: Decades of Memories at Stake
Neither Lonnie nor Kay wanted to sell the farm; it had been in their family for decades. However, the maintenance burden was becoming difficult to manage with just Social Security and a small IRA.
The biggest hurdle wasn't just the money—it was the property itself. Was their 45-acre property, zoned as "farmland," even eligible for a Reverse Mortgage?
The Financial Challenge: Protecting the IRA
While their monthly income covered the basics, they had no "safety net" for long-term maintenance. Their long driveway needed resurfacing every five years, and the barn was due for a new roof. Lonnie and Kay were terrified that tapping into their IRA for these big repairs would mean their savings wouldn't last their lifetime.
Time was of the essence—the rain was already starting to erode the driveway—but they didn't want to be rushed into a high-pressure decision.
The Research: Finding the Right Specialist
Kay started searching online for a local specialist. The first loan officer she called from a big national company gave her a flat "No," claiming FHA doesn’t loan on farms. Discouraged but not defeated, Kay found Kim Dodge and Cheryl Teigen through their high Google reviews.
When Lonnie called, the approach was completely different. Kim and Cheryl didn't just guess; they dug into the details. They researched the zoning, the easements, and worked with title and lender partners to get the facts.
The Solution: It’s All About "Highest and Best Use"
Kim and Cheryl discovered that the property was eligible. Here is the "insider" info they provided:
Residential vs. Commercial: FHA will loan on farmland if the appraiser determines the property’s "highest and best use" is a residence and it isn't being used as a commercial farm (like a tree farm or commercial food production).
Improvements over Land: FHA focuses on the "improvements" (the home and buildings) rather than just the raw land.
The Goal: FHA wants to ensure they aren't foreclosing on a borrower's primary source of income, which is why non-commercial farms are often eligible.
The Results: Peace of Mind (and a New Driveway)
Because Kim and Cheryl respected Lonnie's request for a no-pressure environment, the couple took their time. From the first call to the closing, the process took five months—most of which was simply Lonnie and Kay feeling 100% confident in their choice.
Once they moved forward, the loan closed quickly. They took an initial draw to fix the road before winter hit. Now, they have a Reverse Mortgage Line of Credit ready for barn repairs and any future emergencies. They get to stay exactly where they belong with all their furry friends!
What to Do Next
Do you have a unique property or "outside the box" situation? Don't settle for a quick "no" from a fast-talking call center. Call Kim Dodge and Cheryl Teigen today to find out if a reverse mortgage can help you stay in the home you love.
Contact Kim Dodge and Cheryl Teigen:
Telephone or Text: (503) 595-1600
Email: Hello@KimDodgeReverse.com
Licensed in Oregon & Washington, Kim Dodge, Branch Manager | NMLS 186099 | Cheryl Teigen, Loan Officer | NMLS 2089085 | Kim Dodge Reverse Mortgage, a dba of Zyng Mortgage, Inc. | NMLS 76801 | Equal Housing Opportunity | ConsumerAccess.org