HECM Reverse Mortgage - Could Be Your Bailout

7/31/2009

posted by N. Sioris

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HECM reverse mortgages offer a higher lending limit than ever before. At the end of last year FHA changed their antiquated way of determining loan limits by simplifying it into one National loan limit of $417,000.



However, shortly after that, the economy careened off a cliff sending everyone scrambling to hold on to whatever might be left of their stock market portfolios and retirement assets. As the financial meltdown's tentacles choked off bank liquidity and literally froze credit, President Obama had to implement drastic measures to try to stimulate the economy.

By early February of this year, the Economic Stimulus package was passed. Included in the stimulus was a provision that temporarily increased the national loan limit for HECM reverse mortgages all the way up to a whopping $625,500. Wow, that's huge!!

The increase to $625,500. helps in several ways. First, it allows folks with home values higher than $417,000. to access a much greater amount of their equity through HECM reverse mortgages, than they would have been able to at the lower limit of $417,000.

Secondly, because of the banking crisis, the lenders that previously offered jumbo reverse mortgages to people with high value homes, stopped offering those loans. Consequently, HECM reverse mortgages are almost the only viable option available in today's market, regardless of home value.


BUT ONLY UNTIL THE END OF 2009

The loan limit increase for HECM reverse mortgages is due to expire at the end of 2009. At that time the loan limit will revert back to $417,000. unless Congress decides to extend the provision.
If you have a high value home, and think that you may need to access your home equity through a government reverse mortgage, you may not want to procrastinate. Take advantage of the stimulus package now and create your own personal bailout plan.

Seniors Will Get $250.00 Stimulus Checks In May

3/04/2009

posted by N. Sioris

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In May 2009, senior Social Security recipients and retirees will receive $250.00 per person from Uncle Sam, as part of the economic stimulus plan.

The senior payment figures are; $250.00 for individuals, $500.00 for couples that both receive Social Security benefits. This will include retirees, older veterans, Supplemental Security Income (SSI) beneficiaries, and people with disabilities.

Unlike the previous rebate distribution program in 2008, recipients will not have to file a tax form in order to receive the money. It will simply show up in the regular Social Security distributions - either through direct deposit or a check in the mail.

Federal and State retirees who do not receive Social Security benefits also qualify to receive the payment but may have to file a 2009 tax return in order to receive it.

The House of Representatives draft of the stimulus package, which was approved in January did not include the senior payment, however it did end up in the Senate approved bill after Montana Democrat, Max Baucus, Chairman of the Senate Finance Committee proposed it. The Senate provision was also strongly promoted by Democrat Senator, Sheldon Whitehouse, of Rhode Island.

AARP supported the measure from the beginning. AARP sent a letter to lawmakers arguing that many retirees would be ineligible for "workers' tax credits" but were in need of hardship relief. AARP cited research that shows that older people tend to spend such cash payments immediately.

You can read more about the Social Security's Economic Recovery One-Time Payment by clicking here.

You can also link to Frequently Asked Questions about the the payments by clicking here.

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