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.
About Me
- Ted Butler
- Toll Free Senior Home Advisor HOTLINE 1-(866) 665-5497 Email me at tbutler@ StayInHome.com Call Today, you'll be glad you did!
5 comments:
Yea I know i'm looking forward to having the lending limits go up a bit. CA is stuck with a lot of people that owe to much, their homes worth to much and FHA just doesn't cut it.
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This bill will also benefit a lot of those have a stock cooperative as the HECM senior reverse mortgage may be offered for them as well.
Reverse mortgage is a useful estate planning tool that banks and financial institutions ought to offer making available to seniors. It's a great security for them to ensure the delivery of their pensions in the amounts they thought forthcoming.
Yes of course this will allow many persons to apply and get it..
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