FHA Reverse Mortgage

Senior reverse mortgage and FHA HECM programs are more popular now than ever before. Find out why today.

Jun 8, 2012

In the news...

We seem to be getting close to an important "tippin point" in the media... more and more credible resources are doing their own dilegence, getting the facts, writting informed articles regarding aging and the use of the FHA Home Equity Conversion Mortgage.

The HUD version of the Reverse Mortgage is simply the most important financial tool available to Americans in retirement, or approaching retirement, today. As traditional financial planning stratagies have failed millions of those reaching retirement with 401K's at a fraction of what they had planned (and yet we still hear pundits claim that is the market's fault) risk based stratagies have cast a glaring light on the corrupt way in which Americans financial futures have been handled.

But there is a sollution, a way for individuals to improve their level of safety, security and indepence. If you still harbor doubts about the Reverse Mortgage as a vialble option - we challenge you to get the facts. Go to the source. Don't rely on hearsay, even from well meaning professionals, the majority of which know no more about how this program actually works than your hairdresser.

Here is an article from The Wall Stree Journal that is a must read:


And then this from NPR:

May 22nd, 2012 | by Elizabeth Ecker Published in News, Reverse Mortgage | 1 Comment

The current housing market has led many older homeowners into a dilemma: sell at a loss, or run the risk of staying in home past the point where it is a good idea. It has left many families wondering what to do with their homes, says a National Public Radio segment. For some, taking a reverse mortgage could be a viable option for them, NPR says.

Over the past five years, home prices have plunged by roughly a third. During that same period, the annual cost of residing in an assisted-living facility has increased 5.7 percent per year, according to a recent survey by Genworth, a long-term care insurance provider.

So what should be done with the house? Try selling in a depressed market? Or rent it until prices perk up? Or would it make more sense to take out a reverse mortgage and try to stay in the house, using cash from the transaction to hire more help?

…When a crisis hits — say, dad dies and mom needs to move in with a child — the family may see the house as a source of immediate cash to help pay for the move and more care. “It’s found money,” [says Realtor John Mike]. “They don’t care if they get $20,000 less than they would” by being patient. This rushed selling has been contributing to low prices in South Florida, he said.

Mike said renting out a house to create an immediate monthly stream of cash can be a better option than panicked selling. “I’ve seen people who have been very happy with renting out the house, and it’s better for the neighborhood because the house is occupied,” and the home-price comparisons don’t get driven down in a rushed sale, he said.

Another option is a reverse mortgage, which allows someone who owns a home, or owes very little on it, to draw down the equity in the form of cash. That money could be used to pay for personal care to help the occupant stay in the home.

But Mike said that while that path may work for some homeowners, too often “people have regrets because the reverse mortgage just delays the inevitable.” With home prices still falling and nursing aide costs rising, the cash from the reverse mortgage doesn’t go far, and before long, the owner needs to move, he said.

Linda Fodrini-Johnson, a past president of the National Association of Professional Geriatric Care Managers, said deciding what to do with a family home is not only a complicated financial decision, but an emotional one as well.

In many cases, “that’s the house you grew up in,” Fodrini-Johnson said. “It’s a special place.”

Because of the intense emotions surrounding a home, the decisions often cause conflicts among siblings. She urges families to communicate respectfully with each other to determine which options — selling, renting or getting a reverse mortgage — might make the most sense…

Listen to the full NPR segment.

Jan 27, 2008

Waiting to exhale...

Well, the FHA is geting ready, and so are lenders and borrowers alike. With the Economic Stimulus Package up next the President is just a signature away from siging in to law the legislation that will give thousands more Senior Homeowners access to what for many of them has become their only viable asset - the very home that they live in.

But timing is an interesting player in this mix. The conventional lending industry and it's supporting entities are reeling under the Sub-Prime meltdown. Then there is the housing market that is at very best "soft" in many parts of the country.

Thank goodness there is a refuge for those still fortunate enough to be over 62 and have enough equity in their homes to take advantage of a program who's time certainly has come.

While this new bill will lower a portion of the fees and costs associted with the FHA HECM (the financed origination fee will drop from a maximum 2% of the loan amount to 1.5%) this will be quite minor compared to the largest contribution to the overall cost, the FHA Mortgage Insurance Premium that remains at 2% of the loan amount.

What home owners and lenders alike a waiting for though is the FHA Countly Lending Limit to be increased to $417,000.00 for the entire continental United States. This represents a jump anywhere from 14% to more than double depending on the county.

This increase will allow hundreds of thousands more homes to qualify as well as give a tremendous opportunity for those already in a FHA HECM to refinace and take advantage of the gain in accessable equity. That is if their homes have appreciated, and held that appreciation.

Nov 23, 2007

Fha Lending Limits for Reverse Mortgage

It's been a couple of months since the US House of Representatives approved a FHA reform bill, and the senate finance committee has already approved it.

Currently is it expected that the full US Senate will vote on this bill in early 2008.

Among the changes in the reform, seniors will have to pay for HECM counseling out of their own pockets. Fees could be as high as $150.

Until then, seniors can still get the required fha counseling for free. Your counseling certificate is good for 180 days after counseling. Contact me today and I will be happy to sign you up to qualify for your reverse mortgage today!

Aug 27, 2007

If you are waiting for FHA reform to pass senate, think again.

The US House of Representatives had recently passed a bill for FHA reform. Some seniors are waiting to see if FHA limits increase in their areas. Limits are expected to increase to median home values for each county. However, in the last few weeks a few lenders have stopped offering the HECM monthly program that is currently the FHA reverse mortgage program that allows seniors to get the most cash out.

The FHA HECM is the safest loan out there, not only for the senior, the lender and their investors too! With recent fallout with mortgage backed securities, many investors are looking away from all mortgages all together. If investors continue to ignore investing in reverse mortgage backed securities, it could mean more lenders will stop offering the HECM monthly program.

Even with the senate passing legislation that would allow higher lending limits, without the FHA HECM monthly program, it could mean less cash for the seniors.

Waiting can be a gamble. If you need more information, just give me a call.

1-(877)-563-4241   ted@seniorhomeadvisor.net



Jul 19, 2007

U.S. HUD Secretary recommends FHA HECM Loans and other home equity conversion loans

Reverse mortgages keep getting more and more attractive to senior home owners as the federal U.S. government continues to improve, modernize, and insure FHA Home Equity Conversion Mortgages, or HECM loans.

More and more senior home owners are reaping the benefits of reverse mortgages than ever before. The United States Department of Housing and Urban Development recorded over 300,000 seniors have used the FHA HECM loans with the FHA Home Equity Conversion Mortgage to convert the equity in their homes into cash and stop their mortgage payments for as long as they live in the home. Recently, the US Secretary of HUD had
personally recommended the program to his older siblings!

In a summer 2007
public symposium on safeguarding homeownership, Alphonso Jackson, who is the U.S. Secretary of Housing and Urban Development proclaimed that FHA HECM loans play a critical role helping Americans over 62 stay in their homes.

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