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