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Reverse Mortgages: A Non-Recourse Loan

December 18, 2011     no comments

One of the things that we always explain to senior borrowers when they ask about reverse mortgages is that they are non-recourse loans. The next question is always, "What is a non-recourse loan?" This is a very important feature of the reverse mortgage and I want to take a moment to explain just what non-recourse means and how that affects senior borrowers who get reverse mortgages and their heirs. Simply put, a non-recourse loan means that the lender has only your property as security for their loan...they have no other... Read Full Article

2011 Reverse Mortgage Pros and Cons

December 16, 2011     no comments

2011 is fast approaching and people are still asking about the reverse mortgage pros and cons. We have seen some changes over the past year and it's time to update some of the reverse mortgage pros and cons that were reported in our last article. HUD has made some changes that many feared and some have helped, some have made things a bit tougher. We just want to take a look at the new reverse mortgage pros and cons and list some of the things that these borrowers have seen... Read Full Article

Reverse Mortgage Counseling Roundup for 2012

December 9, 2011     no comments

Reverse mortgage counseling is a mandatory step in the process of getting a government-insured home equity conversion mortgage (HECM) loan through the Federal Housing Administration. All reverse mortgage borrowers—regardless of loan amount, home value or financial savvy—must go through this counseling, which is offered over the phone or in person through government-approved counseling agencies. In addition to borrowers, non-borrowing spouses are also be required to attend counseling, according to a recent requirement implemented in September. Reverse mortgage counseling, although it has long been standard procedure for borrowers, has seen its... Read Full Article

FHA Confirms 2012 Reverse Mortgage Limits

December 1, 2011     1 comment

2013 Update: Reverse Mortgage $625,500 Limits have been extended! FHA Confirms 2012 Reverse Mortgage Limits The Federal Housing Administration announced last week through its listserv that the current reverse mortgage loan limit of $625,500 will remain in effect for 2012 and that a mortgagee letter stating this policy is pending. “Lenders are reminded that the maximum claim amount for HECMs is not affected by HR 2112 and the maximum claim amount for HECM remains at $625,500 as stated in Mortgagee Letters 10-40 and 11-29,” the announcement says. “This loan limit... Read Full Article

Can You Defer Property Taxes if You Have a Reverse Mortgage? It Depends!

November 21, 2011     4 comments

Oregon reverse mortgage borrowers made headlines recently when they were suddenly cut from a tax deferral program many had been enrolled in for several years or more. Previously, reverse mortgage borrowers in Oregon were eligible for the state’s senior property tax deferral program—a program that allows people over the age of 65 to defer their property taxes over time while accumulating interest on the deferred tax that is payable upon the senior’s departure from the home. But due to recent changes implemented by the state legislature, reverse mortgage... Read Full Article

Reverse Mortgage Income Requirements: Will You Qualify?

November 15, 2011     2 comments

UPDATE: Financial Assessment has been postponed until 3rd quarter 2012 Borrowers interested in taking out a Home Equity Conversion Mortgage (HECM), or government-insured reverse mortgage, should be aware that they may face a new financial assessment that will look at their monthly income & cash flow to determine whether or not they are eligible for a loan. Lenders have been implementing some income assessments after the National Reverse Mortgage Lenders Association recommended underwriting guidelines to reduce the risk of tax and insurance default and increase quality and confidence in... Read Full Article

Reverse Mortgage Credit Requirements: Will You Qualify?

November 15, 2011     2 comments

UPDATE: Financial Assessment has been postponed until 3rd quarter 2012 For those looking into getting a Reverse Mortgage, it’s important to be aware of certain changes that lenders may be making in the form of credit requirements for borrowers that take place during the loan underwriting process. Reverse mortgage lenders are beginning to conduct these financial assessments as a way to ensure that borrowers will be able to maintain the terms of their loan by keeping up with property charges including tax and insurance. One Lender’s Financial Assessment While not... Read Full Article

Reverse Mortgage Saver Program Gains Appeal

November 8, 2011     2 comments

$0 FEE Reverse Mortgages: All-Time Low Rates & No Closing Cost Options - Request Quote Today! Until last year, there was pretty much one reverse mortgage in town. Whether fixed rate or adjustable rate, almost all reverse mortgages fell under the Home Equity Conversion Mortgage (HECM or “Heck-um”) “Standard” program, insured by the Federal Housing Administration (FHA). Then along came the HECM “Saver.” The HECM Saver program, which offers much lower upfront costs to reverse mortgage borrowers, is growing in appeal among consumers who might not need immediate access to... Read Full Article

A New Landscape for Reverse Mortgages in 2012

November 7, 2011     no comments

The vast majority of reverse mortgages fall under the Home Equity Conversion Mortgage Program and are insured by the Federal Housing Administration. Under that program, the U.S. Department of Housing and Urban Development can make changes that have the potential to impact lenders and borrowers. Market shifts and other factors can also lead to program and loan changes. Here’s what to look out for in 2012: Reverse Mortgage Loan Limits Loan limits under the reverse mortgage program were raised as an economic stimulus measure in 2009 and remain at their... Read Full Article

Imminent Changes to Reverse Mortgage Guidelines / Qualifications

November 4, 2011     2 comments

BREAKING: April 27, 2015 – Reverse Mortgage Financial Assessment Begins! Learn More Here UPDATE! Financial assessment has been postponed until 3rd quarter 2012 If you have any questions, please contact us immediately as time is very short before the requirements will be in effect. Toll Free (800) 565-1722 or request quote here »   In an effort to protect reverse mortgage borrowers from falling behind on the tax and insurance payments associated with their loans, lenders are beginning to take a closer look during the application process at whether borrowers can... Read Full Article