Oregon Seniors and Reverse Mortgage Changes - coming fast!
Big changes are looming over the horizon for Oregon's senior homeowners who are considering a reverse mortgage. Fortunately, Oregonians are not being singled out. The changes apply across the country.
My advice: Get started today. Call a reverse mortgage specialist and see if it is right for you. Get your concerns addresssed and your questions answered. Why the urgency? April 27, 2015 a financial assessment component will be in place for reverse mortgage lending guidelines. This could mean the difference between eligibility or simply ineligible.
It doesn't hurt to look objectively at a reverse mortgage. It is a financial strategy. You still retain title to your home (your heirs can inherit the home) and it does not effect your social security or Medicare. This is one of those times when ignorance is not bliss. You need to know these things. A reverse mortgage may help you stretch your retirement dollars and give the peace of mind that you are in your home to stay.
Many Oregon seniors are particularly looking for homes with main floor conveniences such as a master bedroom, laundry room, attached garage and modern appliances. Bonus: no stairs to climb.
Seniors wishing to purchase a home after April 27, 2015 will need to prove that they can pay property taxes, insurance, HOA dues (if any) and maintenance on the home. Otherwise, the lender may require set-asides for those purposes and this means less money available for your down payment.
Currently there are no income or asset requirements for new home purchases or refinances and folks who have enough equity in their homes glide through the reverse mortgage process. The home must be your primary residence.
After April 27th, financial assessment will entail providing tax returns, review of payment histories (credit reporting) and analysis of future income. It all becomes a bit more complicated. Currently credit reports are pulled only to look for public records and existing liens against the home and credit is not an issue.
Just what is the reverse mortgage process?
- Learn about reverse mortgages
- Get information regarding YOUR situation
- Schedule and complete the required counseling
- Complete the loan application
- Provide two pieces of identification (all borrowers)
- Provide proof of homeowner's insurance
- Provide Trust documents, if your home is in a trust
- Open your door for the appraiser
- Sign the closing documents
- Pick up your check (or follow-up with your bank to find your direct deposit.
The April 27th deadline is not arbitrary. Applications completed after that date will be subject to the new underwriting guidelines. If you are fortunate enough that this will not be of any consequence to you, then you may relax and take your time.
In the event that income could be a potential problem....don't procrastinate. Get started on a HECM (home equity conversion mortgage) that will enable you to stay in your home as long as you want. Talk to a licensed professional and set an appointment for required counseling that is just a phone call away
Oregon Seniors and Reverse Mortgage Changes - Coming Fast!