HECM Reverse Mortgages Could Be The Answer

9/08/2009

posted by N. Sioris

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During the past year vast amounts of wealth have vanished into thin air from many retired folks' nest eggs. As a result there is a greater demand for HECM reverse mortgages . It is estimated that trillions of dollars in retirement portfolios have evaporated over the last 18 to 24 months. This is undeniably, the worst economic collapse since the Great Depression.

As a result of the stunning loses experienced by many seniors all ready in retirement and relying on fixed incomes, it has been increasingly necessary for many retirees to take a serious look at tapping into home equity through the use of HECM (home equity conversion mortgage) reverse mortgages in order to replace lost dividend and investment portfolio income.

HECM reverse mortgages are government insured loans that allow seniors age 62 and older to receive monthly income based on the amount of equity in their homes. The current financial meltdown could be the reason that government reverse mortgage production has increased nearly 20 percent over the same period last year.

For older Americans who intend to stay in their homes long-term, HECM reverse mortgages could very well be the financial vehicle they need in order to sustain their cash flow during their retirement years.


Qualification Is Easy

This can be a very attractive choice because there is no repayment required on HECM reverse mortgages as long as the seniors remain in the home as their primary residence. There are also no income or credit qualifications in order to be eligible for a government reverse mortgage.

If you or a family member would like additional information about HECM reverse mortgages, please contact us by clicking below or call our office at: 1-888-269-1098

Reverse Mortgage Loan Limit Increased To $625,500.

2/18/2009

posted by N. Sioris

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President Obama's $787 Billion economic stimulus package included a new higher national FHA - HECM Reverse Mortgage loan limit of $625,500. The previous loan limit was $417,000. nationally except in HI, Alaska and Puerto Rico.

The new higher loan limit of $625,500. is particularly good news for several reasons:

1. Due to the current financial meltdown on Wall Street there are no longer any lenders in the market that are willing to loan "Jumbo" loan amounts on a reverse mortgage. That left anyone with a high value home - (for example $450,000. or higher,) access to such a small amount of their equity, that it was hardly worth their while to even bother with an FHA/HECM reverse mortgage.

2. The new higher loan limit of $625,500. will now offer anyone with a home value of approximately $417,000. or higher access to substantially more money than under the previous limit.


Two Caveats To The New Lending Limit:

1. Under the new law, the higher loan limit will only be available for loans originated for the balance of 2009. (It is possible that Congress could request an extension of this time frame, but as of now, it will expire at the end of the year.)

2. Lenders will not be able to process or close loans based upon the higher loan limit until HUD issues an official "Mortgagee Letter" allowing the implementation of the new guidelines as set forth in President Obama's Stimulus Package.

As a side note, one would hope that since there is a possibility that the higher lending limit will permanently expire at the end of this year, that HUD will act quickly to get this provision implemented. After all it is not called a "Stimulus" package for nothing.

If you are interested in receiving a reverse mortgage loan estimate based upon the new higher lending limit, click here or call our offices toll free at: 1-888-269-1098

Can I Be Forced To Move or Sell If I Get A Reverse Mortgage Loan?

9/07/2008

posted by N. Sioris

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You can never be forced from your home or required to sell your home if you have an FHA insured HECM reverse mortgage loan. A question that comes up frequently from folks that are considering a reverse mortgage is:

"If I live long enough to use up all the equity in my home, will I be forced to sell my home and pay off the reverse mortgage lender?"

The answer to this question is an unequivocal "NO."

As long as you continue living in your home as your primary residence, keep it properly maintained and pay your real estate taxes, you will never be forced from you home. If you live so long that all your equity has been paid out to you, or if your property value drops after the loan is in place, it is not your problem.

HECM reverse mortgages are non-recourse loans, which means that the house stands alone for the debt. When you take out a HECM reverse mortgage, one of the closing costs is the FHA insurance premium. The insurance fund is used to pay the difference to the lender, in the event of a shortfall at the time that you do leave your home permanently or sell. You or your estate are NEVER responsible for any shortfall at the end of the loan term.


HECM Reverse Mortgages Become Due:

* When the last borrower passes away.
* The borrower sells the home.
* The last borrower leaves the home for 12 consecutive months.
* The home is not properly maintained.
* Real estate taxes or property insurance are not paid.

A couple of the most attractive attributes of a HECM reverse mortgage loan is the guarantee of a payment free mortgage for as long as you live in your home.

If you elect the tenure income stream, you are guaranteed a fixed amount of money being paid to you on a monthly basis for as long as you live in your home. NO MATTER WHAT! This loan has the full faith and credit of HUD and FHA standing behind it.

Click here to read more about additional safeguards for HECM reverse mortgage loans.