Important Changes coming soon to Reverse Mortgages
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.
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?