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How does a reverse mortgage work for heirs?

January 19, 2017     no comments

Question #1 HOW MUCH INTEREST IS ACCUMULATED ON A $100,000 REVERSE MORTGAGE AT THE END OF 10 YEARS TO PAY BACK.. Question #2 WHAT IF YOUR HOUSE PROPERTY DEVALUES WAY BELOW AMOUNT GIVEN AND YOU HAVE NO WAY TO ECONOMICALLY PAY BACK..EA.HOUSING SLUMP.... Question #3 HOW DOES A REVERSE MORTGAGE WORK FOR MY HEIRS? IS IT POSSIBLE TO PUT ONE OF YOUR CHILDREN ON THE OFFICIAL LOAN APPLICATION SO AS TO KEEP HOME IN FAMILY AND HAVE A PLACE TO LIVE IN AND RAISE A NEW FAMILY (GRANDCHILDREN)...THIS WOULD BE... Read Full Article

Would a reverse mortgage be a good option for younger spouse?

January 19, 2017     no comments

My husband is 63 and I am 60 - would reverse mortgage be a good option for us? - Patricia Hi Patricia, I'm afraid you have not given me much information.  You are not yet old enough to be on a reverse mortgage (all borrowers must be 62 years of age or older) and so you would have to come off of the title and your husband would have to do the loan in just his name.  You would be determined to be a non-borrowing spouse.   You could be... Read Full Article

Reverse mortgage on manufactured home with acreage?

January 17, 2017     no comments

Our stick built home is on 3 acres and is valued at about $375,000. In 2001 we added a manufactured home on the same property. It is on a permanent foundation, is permitted, has its own separate utilities and address. It is presently a rental and is valued at about $150,000. In checking with two different lenders both indicated that everything was in order except that their appraiser cold not find a comparable property therefore without an appraisal they could not complete my Reverse Mortgage. Do you have any suggestions?... Read Full Article

How much is the downpayment required for a HECM purchase?

January 17, 2017     4 comments

We understand to do a reverse purchase mortgage have to put at least 51% down. Using 100k as example, wife understands we can get back some of the 100k...if so, when? - Art Hello Art, Firstly, the amount you put down depends on your age and the value of the home as it relates also to the HUD maximum lending limits and interest rates.  At the age of 62 for the youngest borrower, the benefit amount is 52% assuming that the purchase price is not over $636,150 (any amount... Read Full Article

Here’s Why Harvard Supports Reverse Mortgages

January 14, 2017     no comments

The population of older Americans is growing and will continue to grow for the next two decades. By 2035, it is projected that one out of every three households in America will be headed by someone age 65 or older. But among the older adults, the percentage of those with low incomes will grow. In 2015, 15 million older adults earned less than 80% of their median incomes. By 2035, that number will increase to 27 million, according to a recent report from the Joint Center for Housing Studies of... Read Full Article

Reverse Mortgage Changes 2017 – What You Need To Know.

January 5, 2017     4 comments

ALERT: Oct. 2017 HUD to Lower Benefits/Raise Costs Under President Trump-Sec. Carson 2017! Does that sound as odd to you as it does to me?  Seems like it was only yesterday that HUD finally lifted the county by county limits on the HECM program and we went to a national limit of $417,000 that was raised just a year later to $625,500 and just stayed there but that was actually 2008/2009. Just last week when we were worrying about the Y2K bug, when all the computers were supposed to go haywire... Read Full Article

Reverse Mortgages Explained: What It Is & How it Works.

December 7, 2016     no comments

What is a Reverse Mortgage & How Does It Work? Over the past several years there have been a number of television commercials with spokesmen pitching reverse mortgages. However, it is still not a term that is very well understood by most people for a very good reason. Mortgages come from lenders and are what people use to purchase homes, not earn money. However, the reverse mortgage is a unique arrangement that allows people who own their homes to actually acquire money while using their property as collateral. In... Read Full Article

Higher Reverse Mortgage Lending Limits Coming in 2017

December 5, 2016     2 comments

Higher Reverse Mortgage Limits Coming in 2017 Starting in 2017, lending limits for government-backed reverse mortgages will increase, allowing borrowers the opportunity to access more of their home equity than ever before. The vast majority of reverse mortgages are federally-insured Home Equity Conversion Mortgages (HECMs) that are backed by the Federal Housing Administration. These loans allow homeowners age 62 and older to convert a portion of their home equity into loan proceeds that can be used to supplement retirement spending. On December 1, 2016, the FHA announced... Read Full Article

2017 Reverse Mortgage Limit Increased to $636,150

December 2, 2016     no comments

FHA Increases HECM Loan Limit The maximum claim amount for FHA-insured Home Equity Conversion Mortgage (Reverse Mortgage) will increase from its current $625,500 limit to $636,150 in 2017, according to Mortgagee Letter 2016-19 published today by the Department of Housing and Urban Development. This new MCA – which is equal to 150 percent of the Freddie Mac national conforming limit of $424,100 – becomes effective for case numbers assigned on or after January 1, 2017 and will last through December 31, 2017. The $636,150 limit also applies to the Freddie... Read Full Article

Reverse Mortgage Condo Changes Allow for Spot/Single Unit Approval

November 1, 2016     8 comments

ALERT: HUD Announces Condo Changes Effective October 15, 2019! UPDATE: 9/3/2017 It is our unfortunate duty to inform all owners of condominium units located in projects that are not currently HUD approved that HUD released a statement today that HUD has decided not to alter the condo approval requirements/process at this time.  There had been so many rumblings of new rules to come and with this announcement, HUD has stated that the current process will remain in effect for the time being with no changes at this time... Read Full Article