hecm: What Exactly is a Reverse Mortgage? - 02/01/11 01:16 PM
What exactly is a reverse mortgage? (Technically known as a HECM - Home Equity Conversion Mortgage).
It is simply a loan against a home, just like a "forward" mortgage, in many respects.  Let's say you buy a home and get a mortgage from Moneybags Lending for $200,000.  Now Moneybags Lending has a lien against your home for that amount.  You now have to start making monthly payments to the lender until the loan is paid off or you either sell the home or refinance it (which has the effect of paying off the loan).  We are all familiar with these types … (2 comments)

hecm: Using a Reverse Mortgage to Purchase a New Principal Residence - 01/31/11 06:02 AM
A HECM for Purchase is the FHA insured reverse mortgage that allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from the reverse mortgage.  The  program became effective January 1, 2009.  Previously, if a senior wanted to use a reverse mortgage to purchase a new principal residence, they had to secure financing for the home and then turn around and pay off that mortgage with a reverse mortgage.  The disadvantage was that it required two closings and the borrower incurred two sets of fees for the transactions. The new program - HECM for purchase - … (0 comments)

hecm: FHA/HECM Reverse Mortgage Loan Limit still at $625,500 - 03/15/09 06:13 AM
It wasn't too long ago that the lending limit on the reverse mortgage (HECM) was increased to one national limit of $417,000 instead of lower limits that varied by county. The increase was part of HR3221, the FHA Modernization Act, passed in July, 2008. It wasn't until November, 2008, that HUD allowed implementation of the new limit. The increase allowed seniors (over 62) with home values above the old county lending limit to access more of their equity.The limit was raised again to $625,500 which allowed access to even more equity on higher valued homes. 
I find this ironic in a … (0 comments)

hecm: Here we go again! HECM (reverse mortgage) limits will probably increase to $625,500! - 02/15/09 05:47 AM
It wasn't too long ago that the lending limit on the reverse mortgage (HECM) was increased to one national limit of $417,000 instead of lower limits that varied by county.  The increase was part of HR3221, the FHA Modernization Act, passed in July, 2008.  It wasn't until November, 2008, that HUD allowed implementation of the new limit. 
The increase allowed seniors (over 62) with home values above the old county lending limit to access more of their equity.  Raising the limit even higher, to $625,500 will allow access to even more equity on higher valued homes.  Since the Jumbo reverse mortgage … (0 comments)

hecm: New Reverse Mortgage Program -- HECM for Purchase - 01/05/09 09:28 AM
A HECM for Purchase is the FHA insured reverse mortgage that allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from the reverse mortgage.  This is a new program that became effective January 1, 2009. 
Previously, if a senior wanted to use a reverse mortgage to purchase a new principal residence, they had to secure financing for the home and then turn around and pay off that mortgage with a reverse mortgage.  The disadvantage was that it required two closings and the borrower incurred two sets of fees for the transactions. The new program - … (8 comments)

hecm: More Questions about the new HECM Limits - 08/07/08 05:17 AM
I got an email asking me about the HECM limits and I thought my response might be helpful to some of you:
Sylvia - Do you have any idea when the national loan max is going to be applied to Reverses? Also, do you have any info on the applicable percentage that will be applied against this amount based on the customers' ages? Clearly, we can't use the calculator for this so I was hoping you had that info or a way to get it. I have two clients now looking at the reverse product and I cannot tell what they … (2 comments)

 
Sylvia Williams, Ed.D (Reverse Mortgage Consultant)

Sylvia Williams

Ed.D

Elk Grove, CA

More about me…

Reverse Mortgage Consultant

Address: Elk Grove, CA, 95624

Office: (866) 523-1959

Mobile: (916) 719-4683

Information, Insight, and Education on the reverse mortgage program. Be sure to subscribe so you can catch posts! Moving Forward in Reverse with Sylvia Williams



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