Important Changes coming soon to Reverse Mortgages

By
Mortgage and Lending with Jack Tenold LLC Jack Tenold NMLS 10261

 

Important Changes coming soon to Reverse Mortgages


Reverse Mortgage changes March 2, 2015 March 2, 2015 is the scheduled date for major changes* to the Reverse Mortgage guidelines.  Retirees, baby boomers and homeowners who have been delaying getting informed about this special home loan (for which you must be 62 to qualify) would be wise to get started NOW.  

Why?  If you move quickly you can have an application completed and an FHA case number assigned to you prior to March 2, 2015 and your application will fall under the current guidelines which are less stringent.

 

Here is a quick look......

1.  A financial assessment could make it tougher to qualify.  

2.  Additional documentation which may include tax returns,  payment histories, and proof of assets.

3. LESA - Life Expectancy Set Aside - calculated during the application process means money held back for future taxes.  And.....

 4. Credit scores will be considered.  

 

Looking at the fine print * (If you are interested in the details, the HUD Mortgagee letters can be viewed at ML 2014-21 and ML 2014-22 )

 

This is so important, it is worth repeating:  Complete the application prior to the pending changes to allow your loan to be processed under current (less stringent) guidelines. Mandatory counseling (see below) must be completed, the application must be taken, and the FHA case number must be issued, all before March 2. So don't delay. 

Other national guidelines remain in place such as maintaining the home, paying taxes, insurance, HOA dues (if any) and the home must be your primary residence.  Counseling over the phone or in person is required for all borrowers.  A reverse mortgage specialist will provide you with a list of certified HECM Counseling Agencies or you can find one on line at https://entp.hud.gov/idapp/html/hecm_agency_look.cfm

Important: A reverse mortgage is a loan which is due when the last borrower leaves the home permanently. To find out if you qualify or if you want information for a parent or loved one, call a reverse mortgage specialist.  

Requesting answers to all of your questions does not obligate you in any way.  And while you are at it, get a loan comparison.  It will give you the data you need to make this important decision.  For many, one's home is their largest asset and a reverse mortgage may be a good financial decision to put your home's equity to work for you.  

 If you are considering a reverse mortgage don't procrastinate, because

Important Changes are coming soon to Reverse Mortgages

 

Additional information:  What's not to like about a Reverse Mortgage?

Posted by
Jack Tenold NMLS 10261                                                       
      
You can reach me anytime at
     509-710-2227 no strings attached                             
 

Email:  Jack@JackTenold.com

Website: JackTenold.com

Refinance & Purchase  |   Reverse Mortgage Specialist 
Licensed to assist homeowners and home buyers in Washington
 
         Jack Tenold LLC Washington License No. MB-1819307  Office: 203 N Washington St Suite 200L Spokane, WA 99201      
 
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Comments (2)

Shapna Riyan
Brax Homes
http://www.braxhomes.com

A reverse mortgage is one of the most popular types of home loan available in the marketplace, which are designed especially for senior homeowners who are having age above 62. However, it's difficult to identify how the new changes can impact reverse mortgage home loaners.

Jan 13, 2015 12:38 PM
Jack Tenold
Jack Tenold LLC - Spokane, WA
Specializing in Reverse Mortgages

Good morning Shapna,  Seniors wishing to purchase a home with a reverse mortgage will need to prove that they can pay for property taxes, insurance, HOA dues (if any) and maintenance on the home, otherwise, the lender may require set asides for those  purposes. Currently there are no income or asset requirements.

Jan 14, 2015 12:28 AM