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Choice Offers Fixed Rate Lump Sum + Monthly Payments

December 17, 2013     no comments

Finally! Borrowers who wish to apply for the Government Insured Reverse Mortgage known as the Home Equity Conversion Mortgage (HECM or "Heck-um") have more than just one way to opt for a Fixed Rate loan. Ever since the fixed rate loans were introduced to the Reverse Mortgage product, borrowers have always had just one option to choose from, which was a mandatory draw at closing of every dollar that they qualified for at closing. This requirement proved to be a bad one for both borrowers and HUD.  Borrowers had no... Read Full Article

Introducing the HECM Choice Reverse Mortgage

December 17, 2013     1 comment

Now there’s a reverse mortgage that gives you the flexibility to take only the money you need up front, and enjoy the certainty of an interest rate that doesn't change. Before Fixed HECM Choice, you had to take all of the money that was available right away—even if you didn't need it all. Now there’s Fixed HECM Choice—a Home Equity Conversion Mortgage (HECM) with an interest rate that will never change over the life of the loan. As long as you take at least 60% of your cash up... Read Full Article

Reverse Mortgage Limits Stay High for 2014

December 13, 2013     no comments

Loan limits for government-insured reverse mortgages have kept stable at a maximum claim amount of $625,500 for 2014. For borrowers in high-valued homes, this means you will retain your ability to access your home’s equity as a new reverse mortgage borrower. Next year’s limits for the Federal Housing Administration-insured Home Equity Conversion Mortgage (HECM) program remain unchanged from 2013. In contrast, loan limits for “forward” mortgages were reduced in certain high-cost areas from $729,750 to $625,500, effective January 1, 2014. The HECM program allows homeowners aged 62 and... Read Full Article

2014 Reverse Mortgage Changes: New Qualifications Are On The Way

December 11, 2013     no comments

BREAKING: April 27, 2015 – Reverse Mortgage Financial Assessment Begins! Learn More Here Update: HUD Delays Implementation of Financial Assessment Dec. 20--HUD issued a Mortgagee Letter this afternoon that delays implementation of financial assessment, which was scheduled for January 13, 2014. Conversations with HUD indicate we can expect another Mortgagee Letter on Financial Assessment Requirements sometime in January with implementation 90 days following the release of that letter. Mortgage Letter 2013-45 reads: "In Mortgagee Letters 2013-27 and 2013-28, the Department of Housing and Urban Development issued guidance to HECM mortgagees... Read Full Article

2014 Reverse Mortgage Financial Assessment: Will You Qualify?

December 6, 2013     no comments

BREAKING: April 27, 2015 – Reverse Mortgage Financial Assessment Begins! Learn More Here Update: HUD Delays Implementation of Financial Assessment Dec. 20--HUD issued a Mortgagee Letter this afternoon that delays implementation of financial assessment, which was scheduled for January 13, 2014. Conversations with HUD indicate we can expect another Mortgagee Letter on Financial Assessment Requirements sometime in January with implementation 90 days following the release of that letter. Mortgage Letter 2013-45 reads: "In Mortgagee Letters 2013-27 and 2013-28, the Department of Housing and Urban Development issued guidance to HECM mortgagees regarding... Read Full Article

Reverse Mortgage Purchase Guidelines: Income & Assets

November 20, 2013     2 comments

Between HUD tightening reverse mortgage guidelines and some reverse mortgage myths that many borrowers have believed, I think now is a very good time to put out a little guide to help borrowers manage their expectations about reverse mortgages.  The reverse mortgage is a federally-insured loan. It is not a government grant and although the requirements have always been much easier than most standard or forward loans for qualification, HUD has recently tightened up the program parameters and they have announced that the qualification criteria will be even more stringent in... Read Full Article

Considering a Reverse Mortgage with a Spouse not 62?… Not So Fast

October 8, 2013     1 comment

Question from our reader: We are thinking about getting a reverse mortgage when I turn 62, my wife will be 60. We will put the house in my name only so I can get the reverse mortgage. Would we have to refinance or could we pay a fee and have my wife added as co-borrower when she is 62? - Tim Hi Tim, This is a great question and we recommend that most borrowers do not remove one borrower from title to get a reverse mortgage.  There are... Read Full Article

The NEW Reverse Mortgage HECM 60: Which Program is Best for You?

October 7, 2013     no comments

As with any mortgage product, a reverse mortgage offers borrowers several different options when it comes to loan type and interest rate. There are variable rate options, fixed rate options and even a reverse mortgage that allows you to purchase a new home. Each product comes with its own set of advantages, so it's important to research upfront and find out which type of reverse mortgage will be best for your situation. There are a couple of questions to ask yourself upfront that will help you determine... Read Full Article

2013 HECM Update: A Preview of Reverse Mortgage Changes Ahead

October 7, 2013     no comments

HECM Update: A Preview of Changes Ahead By Peter Bell, President and CEO We have been getting a lot of questions from members regarding the forthcoming changes to the HECM program, now that the Reverse Mortgage Stabilization Act has been signed into law. While many details remain to be ironed out, we thought we would provide the following update. The gaps in what we know will be filled once HUD issues a Mortgagee Letter implementing the changes, if not sooner. Our understanding is that the M.L. will be out prior... Read Full Article

What to Expect From The New Financial Assessment

September 30, 2013     no comments

BREAKING: April 27, 2015 – Reverse Mortgage Financial Assessment Begins! Learn More Here Update: HUD Delays Implementation of Financial Assessment Dec. 20--HUD issued a Mortgagee Letter this afternoon that delays implementation of financial assessment, which was scheduled for January 13, 2014. Conversations with HUD indicate we can expect another Mortgagee Letter on Financial Assessment Requirements sometime in January with implementation 90 days following the release of that letter. Mortgage Letter 2013-45 reads: "In Mortgagee Letters 2013-27 and 2013-28, the Department of Housing and Urban Development issued guidance to HECM mortgagees... Read Full Article