I am somewhat familiar with making a conventional mortgage loan. I'm curious if anyone knows about whether an individual can write a reverse mortgage to a non-related person, and what sorts of things happen.
The homeowner is
not quite old enough to collect OAP/GIS and CPP, but owns a home.
not old enough to qualify for a conventional reverse mortage, and they're usurious crap anyway
The idea would be to privately lend 50% of the home value now, basically write a private reverse mortgage, then once the income streams come online for the borrower, convert to a conventional mortgage and collect back as available. If I can afford to leave $150K tied up at an expected yield of 1.5% for 10-15 years, is this a feasible way of helping out a friend in need?