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Reverse mortgage question
Probably not as things stand. A reverse mortgage is secured by the property described in your title documents, so a garage on a separate parcel usually can't be counted in the appraisal. Even if the appraiser misses it, the underwriter will usually see two parcels in the title report and ask for a fix, which can delay the loan or lower the value. The usual fix is a lot line adjustment or lot merger that puts the home and garage on one parcel before the appraisal. Talk with us before you order anything.
This question came to us from a homeowner who owned two lots side by side. The house sat on one. On the other was a beautiful four-car garage, fully finished, with heating and air, a full bathroom, the works. They wanted to know: if the appraiser includes the garage, will that cause problems?
The honest answer: yes, it probably will. Here's why, and what to do about it.
A reverse mortgage is secured by your home, and "your home" means the property described in the title report and the deed of trust. The loan attaches to that property.
If the garage sits on a different legal parcel, it usually isn't part of the property securing the loan. And if it isn't part of the security, it generally can't be counted in the value. No matter how nice it is.
Sometimes an appraiser walks the property, sees a house and a garage, and writes it up as a single-family home with a garage, without realizing there are two parcels. That doesn't solve the problem. It just moves it.
The underwriter reviews the preliminary title report, and the legal description there will usually show both parcels. At that point the underwriter will generally ask for one of two things:
A revised report may use different comparable sales, and that can mean a lower value. Worse, you find out late in the process, after you've paid for the appraisal and waited on it. That's the outcome I want to help you avoid.
The usual fix is a lot line adjustment or lot merger through your county, so the home and the garage sit on a single legal parcel. Ask us before you start, since what the lender needs can vary. Once that's recorded, the appraisal can include the garage as part of the home.
A few things to know before you start:
Every county does this a little differently, so treat this as a starting point, not legal advice.
Sometimes yes, sometimes no. If the garage adds real value and you're near the edge of what you need, merging the lots can make a meaningful difference. If your home's value on its own already gets you where you need to be, it may not be worth the time and cost.
Keep in mind that on a HECM, home value only counts up to the HECM lending limit. If your home is already at or above the limit, adding the garage may not change your numbers at all. See Lending Limits. For higher-value homes, a proprietary (jumbo) reverse mortgage may be worth comparing.
This is exactly the kind of situation we should talk through on the phone before anyone orders an appraisal. Have your property tax bills or a recent title report handy so we can see how the parcels are described. Call us at 530-888-6000, or start your reverse mortgage review.
And whatever the property looks like, the usual obligations apply. There are no required monthly mortgage payments. You must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms.
ZYNG Mortgage, Inc., NMLS #76801. A reverse mortgage has no required monthly mortgage payments and uses your home's equity. Fees, mortgage insurance and other costs can be added to the loan balance, and the balance grows over time as interest is added, so your equity typically decreases. When the loan becomes due, the home may need to be sold, or the loan repaid from other funds. Interest is not tax-deductible until it is paid, in part or in full. You keep title to your home and must keep paying property taxes, homeowners insurance and upkeep, and meet the other loan terms; not doing so can make the loan due and could lead to foreclosure.
This material is not from HUD or FHA and was not approved by HUD or a government agency.
HECM count at the top of this page: HUD data through September 2026 (source, opens in a new tab).
