December 4, 2021

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FHA HECM Loans and Appraisals: A Reader Question

073A reader asks, “I am in the process of getting a reverse mortgage loan based on the approximate value of my home. If the Appraised value is considerably less than initially expected and/or extensive repairs are required to comply, do I have the option to back out of the loan process?”

Without more information, this question is difficult to answer. How far along is the HECM loan process? Has the reader signed any legally binding paperwork that commits him or her to closing the deal? These are important questions to ask and borrowers in these cases should approach the lender directly for assistance.

If the borrower feels that he or she has not signed a contract or other legally binding document that commits the HECM loan to close, yet feels the lender isn’t allowing the application to be cancelled, it is best to contact the FHA directly at 1-800 CALL FHA for advice and assistance.

In some cases legal counsel may be needed, and when in legal doubt the advice of a lawyer is never a bad thing.

There may also be state law that affects these sorts of transactions, so a borrower may need to do some research or have a legal expert discuss the impact of those laws where applicable.

The FHA has a helpful HECM page on its official site, which is available at

Do you have questions about FHA home loans? Ask us in the comments section. All comments are held for review before they appear on the site.



Joe Wallace - Staff Writer

By Joe Wallace

February 9, 2015

Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for for (8) years and is currently the Associate Editor for

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About was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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