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Reverse mortgage question
Sometimes. On a HECM, every appraisal goes to FHA for a collateral risk review, and if FHA flags it, a second appraisal is required. When there are two, the lower value is used to figure your loan. Some proprietary (jumbo) reverse mortgages also require a second appraisal when the home is worth more than a set amount. Your loan officer will usually know within a few days of the first appraisal whether you need a second one.
The short answer is yes, sometimes. It doesn't happen on most loans, but it happens often enough that I mention it to every client up front, so nobody is surprised if the call comes.
Back in 2018, HUD started sending every HECM appraisal through an FHA review called a collateral risk assessment. FHA's system looks at the appraisal and the market data around it. If it's comfortable with the value, you're done. If it flags the appraisal, a second appraisal is required before the loan can close.
That rule was supposed to be temporary. In 2019, HUD extended it with no end date, and it's still in place today.
HUD's reason was simple. A HECM is based on the home's value, and the borrower doesn't make monthly payments to prove the loan is working. If a value is too high, FHA's insurance fund takes the loss later. The second appraisal is a check on that.
When there are two appraisals, the lower of the two values is used to figure your maximum claim amount, and that sets how much money you can access. If the second appraisal comes in higher, it doesn't help. If it comes in lower, it lowers your available money.
HUD made some changes to appraisal review and the "reconsideration of value" process in 2024, then canceled them in March 2025 and went back to its earlier rules. For HECM borrowers, the important part didn't change: FHA still reviews every HECM appraisal and can still require a second one.
If you think the first appraisal missed something, like a recent comparable sale or a wrong square footage, you can send that to your lender in writing and ask for a reconsideration of value. The lender reviews the request under HUD's process.
Ask before it's ordered, because practices vary by lender. Here's the good news: when a second appraisal is needed on one of our loans, ZYNG often covers the cost. When we don't, it can generally be included in your closing costs, though some lenders ask for it upfront, especially on a HECM for Purchase. Either way, I'll tell you before anything is ordered, so there are no surprises.
Proprietary (jumbo) reverse mortgages set their own appraisal rules. Some require a second appraisal once the home's value passes a set amount, and those thresholds vary by lender and change over time. If your home is high value, plan on it as a possibility and build the time into your schedule.
A second appraisal adds time, and it can take longer in busy markets or rural areas. On a purchase, that matters. Build it into your contract timeline so you're not up against a deadline. See HECM for Purchase.
Your loan officer will usually know within a few days of the first appraisal whether a second one is needed. If you want to talk through what to expect, call us at 530-888-6000.
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).
