2013 HECM Changes to cash out

While the details are still sketchy on how the various rules are going to be implemented, one of the larger changes is in how much cash the senior can put into their pocket at closing. When the borrower owns their home free and clear, then the amount of cash draw at the initial closing will […]

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2013 HECM changes part 2

As I indicated a few weeks ago the HECM reverse mortgage is going to see some significant changes. The details of how these new rules are going to be implemented have yet to come out fully, however here are some of the highlights of what to expect. Lower loan amounts based on the age/home value […]

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More HECM changes on the way?

Last week Congress gave the FHA authority to stabilize the Home Equity Conversion Program (HECM). Since HECM’s make up the majority of reverse mortgages this is something we need to watch carefully. The exact implementation of this “stabilization” is not clear, but if it’s anything like the stabilization efforts on the forward mortgage side we […]

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Can the property be held in a trust?

Trusts are normally allowed in a reverse mortgage. The trust typically must be revocable to qualify.  In some cases, the lender’s underwriting group may determine a particular trust is not acceptable.  An unacceptable trust can usually be rewritten to comply and then be accepted, or the home may be removed from the trust to complete […]

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What is a HECM Saver Reverse Mortgage?

In October 2010 the Federal Housing Administration launched a new reverse mortgage called the HECM saver. In exchange for the borrowing taking a  lower loan amount, the HECM Saver charges drastically lower up front fees. HECM is short for Home Equity Conversation Mortgage, the reverse mortgage program insured by the FHA. The vast majority of […]

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How do I qualify for a reverse mortgage?

There are two qualification for a reverse mortgage, your age and your home. In order to qualify for a reverse mortgage you must be 62 years of age or older. In the case of a married couple the youngest spouse must be 62 years old. No other credit or income requirements are reviewed. No minimum […]

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