In February 2009, President Obama signed the stimulus package, which included an increase in the Reverse Mortgage loan limits. Well not really the loan limit, but the value we use to then figure the loan amount was increased by 150%. The value limit had previously been set at $417,000, and the new limit is $625,500. This was supposed to expire at the end of 2009, and then was extended until the end of 2010. Now congress has signed another extension lasting 9 more months, which should finally come to an end at the close of Fiscal Year (FY) 2011, or October 1, 2011.
I truly hope that this isn’t the case. The raised loan limit has helped me close several clients with higher home values, which means more people with the need can take advantage of the Reverse Mortgage Program. Here in South Florida, there are many people will with $1,000,000 homes or 600k, 700k, or 800k homes. There are people who are 62+ in these homes and either need or want to be able to use the Reverse Mortgage. There may be areas in the United State that won’t be affected by this, but South Florida will absolutely be one of those that ARE affected. This is a sector of the population that also has needs, and this limit should not come back down.
If you would like to see how much you could receive with today’s rates and limits if you were to do the Reverse Mortgage, please click on the link below. I will get back to you as soon as possible:
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