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Rule Change Brings Higher Reverse Mortgage Principal Limits

July 3rd, 2014

If you’re in the process of applying for a reverse mortgage, or if you have been considering tapping into your home equity with a government insured Home Equity Conversion Mortgage (HECM) loan, a recent change may mean you can qualify for more loan proceeds.  HUD surprised everyone with a Mortgagee Letter of the changes at the very end of June and then had an industry-wide conference call on July 2, 2014 to explain to lenders how the changes would work.   The Federal Housing Administration, under its HECM program, offers government-insured reverse mortgages for borrowers who are 62 and older and […]

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Posted in Lending Limits | No Comments »

In 2014 Reverse Mortgages Are No Longer a “Last Resort”

July 1st, 2014

I’ve been told to wait on taking a Reverse Mortgage as a last resort. Why do you think a CPA said that? Is it a loan that is non-reversible? Do you pay interest on the cash in a line of credit when it is spent all the to its end? If a house is paid off & money is tight, but livable, why would a senior take a reverse mortgage? It seems like it only puts them in financial debt until they die or find it impossible to sell if the loan needs to be paid back before any house […]

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Posted in Pros & Cons | 2 Comments »

Drastic Reverse Mortgage Changes Are Coming Soon

June 18th, 2014

HUD previously delayed their Financial Assessment, but it looks like they will be taking place soon. There are  changes that will go into effect in the near future that will affect many reverse mortgage applicants. At All Reverse Mortgage, we feel that we wouldn’t be doing our jobs if we didn’t keep everyone up to date on what’s happening. Here are some things you need to know about the upcoming Financial Assessment guidelines (if you have not yet started an application). Documentation will soon be required.  Like the underwriting for a “forward” or traditional mortgage, your lender will ask for and collect […]

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Posted in FHA / HUD News | No Comments »

Big Changes Ahead for Reverse Mortgage Non-Borrowing Spouses

May 5th, 2014

An upcoming rule change is spelling big news for non-borrowing spouses of reverse mortgage borrowers.   Historically, a non-borrowing spouse who wasn’t named on the loan could be held responsible for repaying the reverse mortgage when the named borrower passed away or had to move from the home permanently. This left some non-borrowing spouses lacking financial options if they didn’t have any savings outside of the home.   But now, non-borrowing spouses will be able to defer repayment of the loan as long as they occupy the home, protecting them from losing it if the named borrower passes away or […]

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Posted in Heirs & Loan Maturity | No Comments »

Americans to Move in Retirement- Reverse Mortgage Purchase Can Help

April 24th, 2014

Retirement can mean different things for different people. For many, it means moving out of their longtime home and embarking on a new chapter in a different place.   Approximately 57% of Baby Boomers, adults ages 49 to 67, say they plan to to move out of their current homes during their retirement years, according to a recent survey from Better Homes and Gardens Real Estate.   And a quarter of those boomers are also planning to purchase a second home during retirement, Better Homes and Gardens Found, as they are seeking new locations and new homes in which to […]

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Posted in Home Purchase | No Comments »

Reverse Mortgage to Buy a New House: How much home can I buy?

April 22nd, 2014

Many people take out a reverse mortgage as a way to enable them to remain in their homes while reducing their housing expenses in retirement, but an increasing number of people are using a relatively new type of reverse mortgage to purchase a brand new home that will help them live out that same goal.   Even if you already have a reverse mortgage, using the HECM for Purchase as a way to relocate is still an option.   The HECM for Purchase   This reverse mortgage type was rolled out by the Federal Housing Administration several years ago as […]

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Posted in Home Purchase | No Comments »

Reverse Mortgage Appraisal Problems? Ask The Expert Series

April 21st, 2014

About 6 years ago we had our home appraised for refinancing and it came in at over 210K.  As seniors with no children we decided a reverse mortgage would be a wonderful solution to our money issues and I went on www.homes.com, entered our zip code and zoomed to our block which consists of 6 duplex houses.  According to the website, each of the individual halves of those duplexes are valued at 179 to 181K, so we pursued a RM.  The company sent an appraiser to our home (which we did not have to pay for), and she spent maybe […]

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6 Signs You’re Ready for a Reverse Mortgage

April 21st, 2014

  1. You’re 62! Happy birthday! The federally-insured Home Equity Conversion Mortgage program requires borrowers to be at least 62 years of age in order to qualify for the loan.   Other basic requirements include owning your home outright or with most of your mortgage paid off, maintaining that home as your primary residence, and staying current on property tax and homeowners insurance.   2. You don’t want to leave your home—ever If you’re comfortable in your current home and have no plans or desire to move, a reverse mortgage can help you stay. With a federally-insured HECM, you still […]

Posted in About Reverse Mortgages | No Comments »

What Happens When Your Reverse Mortgage Money Runs Out

March 28th, 2014

My parents have a reverse mortgage with LOC maxed out. It was very helpful to them for many years. One parent is in a long-term care facility and on Medi-Caid. My other parent is living in the home and my understand can live there for as long as alive and able to live there. When both parents are gone, I understand that the outstanding loan (including interest etc would be due and payable (first position) and that Medi Caid would come in and claim whatever they have paid on behalf of parent (second position). Therefore, what would be your recommendation […]

Posted in Reverse Mortgage Q&A: Ask The Expert | 1 Comment »

Growing Demand Ahead for Reverse Mortgages

March 21st, 2014

If you’re a homeowner who’s considering retiring, you may already be in possession of your most important source of retirement funding: your home.   Demand for reverse mortgages—a type of loan that allows you to borrow against the equity in your home, if you’re 62 or older—is expected to increase as a retirement planning tool, finance and economics experts say.   “Having alternative sources of retirement income is critical for those who are currently retired, those retiring in the near future, and those planning to retire in the next 30 to 40 years,” write David W. Johnson, Ph.D. and Zamira […]

Posted in About Reverse Mortgages | 2 Comments »