New Reverse Mortgage Guidelines include paying mandatory obligations and a financial assessment component become effective January 13, 2014.
The foremost benefit of a reverse mortgage is to help seniors stay in their homes. This remains and it is still the only program of its kind, regardless of how many guideline changes come down the pike.
It will still help seniors and it is still a financial planning tool!
The program changes (in a nutshell) include
· Limitations to the amount of funds available at closing
· Mandatory obligations must be paid and may include fees associated with the reverse mortgage, debts (delinquent or otherwise), and repairs to the home after appraisal
· Required financial assessment including credit history, cash flow/income analysis and ability to continue to pay property taxes, insurance and regular home maintenance
These changes are an attempt to make the program work better for the consumer, the lender and the FHA.
If you are interested in a reverse mortgage for yourself or a loved one, please give me a call. I am happy to remove the “devil from the details” so you can understand the whole thing much better. Don’t forget that the home you are living in today may not be the home you wish to live in during your retirement and I can show you how to purchase a better home with reverse mortgage financing.
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