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'Income & Credit Requirements' Category Archives

Can I Opt for a Voluntary Life Expectancy Set-Aside? (LESA)

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Just learned of this feature, LESA. Am a current Reverse Mortgage holder and received a solicitation from a mortgage co. There's a lot to absorb regarding RM's and unless you are an educated real estate professional, it is virtually impossible to understand all the ramifications of these deals. Even with the "counseling" as required, total understanding remains murky. I would...
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How Financial Assessment Made Reverse Mortgages Safer

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"This financial assessment process is conducive to making the Home Equity Conversion Mortgage (HECM) an even safer loan product." If a potential borrower can swallow such an absurdity he need not be concerned about who this financial assessment ( FA ) is making the product safer for!  The FHA wants 1.25% insurance and will only allow 60% loan to value...
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Who pays property taxes and insurance on a reverse mortgage?

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Can I pay the property insurance and taxes yearly without the lender holding part of the funds in a reverse mortgage for a number of years? The normal way is for the reverse mortgage homeowner to pay their own taxes and insurance EXCEPT if you do not meet the residual income or credit requirements of the program. And then, instead...
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This Little-Known LESA Growth Feature Is a Game Changer

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This Little-Known Reverse Mortgage Feature Could Be a Game Changer Qualifying for a reverse mortgage is tougher for some people today than it has been in the past. That’s because new underwriting standards have been developed in the past year to ensure that these loan products are safer for the borrowers who use them. As of April 27,...
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Financial Assessment Update Takes Effect October 3, 2016

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Reverse Mortgage Financial Assessment Update Purpose The intent of this article is to announce upcoming updates to the HECM Financial Assessment and Property Charge Guide guidelines. Implementation These changes are effective for case numbers assigned on or after October 3, 2016.   New Requirements  SECTION NO. SUBJECT REVISED REQUIREMENT 2.14 Payment History on Housing Obligations Requirements apply only to the borrower's...
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Reverse Mortgage & Bankruptcy Implications

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We have recently had several borrowers who had previously obtained a reverse mortgage call and ask us what the effect would be on those reverse mortgages if they had to now begin a bankruptcy proceeding. While we are not attorneys and would always advise you to seek competent legal advice from an attorney in your state, we did want to...
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Reverse Mortgage Set-Aside (LESA) Offers Peace of Mind.

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New Safeguards for Reverse Mortgage Borrowers Offer Peace of Mind How a “LESA” is Giving New Peace of Mind to Reverse Mortgage Borrowers Take a Reverse Mortgage with New Peace of Mind Reverse mortgages have changed for the better. These mortgages, which allow people 62 and older to tap into their home equity in the form of a non-recourse loan,...
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HECM Financial Assessment > Extenuating Circumstances

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Extenuating Circumstances Can Help You Qualify for a Reverse Mortgage Under the new reverse mortgage rules set to take effect April 27, lenders will be required to conduct a thorough analysis of your financial profile before you can qualify—an analysis known as the reverse mortgage “financial assessment.” This assessment weighs things like proof of income and credit history in its...
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HECM Financial Assessment > Tax-Insurance Set-Asides

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If you’re tapping into your home equity through a reverse mortgage, you have probably heard by now about the new reverse mortgage “financial assessment” that is soon to be part of the process of getting a government-insured Home Equity Conversion Mortgage (HECM). The financial assessment, which is similar to the assessment that a “forward” loan originator conducts for traditional...
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