Alert! Financial Assessment coming to reverse mortgages
It has been relatively easy to get a reverse mortgage in the past but a reverse mortgage may soon be out of reach for some homeowners. New FHA guidelines tighten underwriting requirements making it more difficult to qualify for this senior home loan.
For retirees who need to supplement their retirement income and to others who wish to simply increase cash flow, a review of their financial strategy should include learning about and considering a reverse mortgage. My advice is to move quickly in order to avoid the more stringent requirements that become standard March 2, 2015.
A financial assessment is standard with a traditional mortgage so the new guidelines should not be too shocking to reverse mortgage applicants who miss the deadline. A credit report will be pulled and proof of assets, including tax returns, may be taken into consideration. Value of the home is determined by a licensed appraiser.
FHA counseling for reverse mortgage applicants (over the phone or in person) continues to be a requirement of the HECM and the home must be the primary residence. Property taxes, homeowners insurance and HOA (if any) must be paid and the home must be maintained to reasonable standards. The home will be appraised by an FHA appraiser to establish value.
There is good news too. Loan limits will be unchanged through 2015 with the maximum amount at $625,500 based on property value, borrower age and current interest rates.
If you have considered refinancing your current home or purchasing a better home for your retirement, get the information you need from a reverse mortgage specialist. You still have time to get started to avoid the more stringent new guidelines. Talk to a Reverse Mortgage Specialist today.
Alert! Financial Assessment coming to reverse mortgages.