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.

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!

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

www.affordableaging.com

www.seniorhomeadvisor.net