Thursday, January 29, 2015

Reverse Mortgage Requirements Changing 3/2/15

After March 2, 2015, there are some new rules going into effect for anyone considering obtaining a reverse mortgage.

To date, these mortgages have been attractive to a certain demographic because there have been no income and credit requirements. The sole criteria was age, and an appraisal value of the home.  Now, however, according to the HuffingtonPost, “FHA has elected to impose income and credit requirements on future applicants.  The purpose is to assure that … borrowers will have both the capacity and the willingness to pay their property taxes and homeowners insurance.”

My speculation is that this will both inhibit potential borrowers as well as cause delays for those still able or willing to move forward with the HECM (reverse mortgage) product.

Before 2008, we used to do reverse mortgages through Indymac. They are a really great option for the right candidates in planning for their care and retirement. With guidelines changing and the implementation for lenders to maintain their NMLS license, we now refer these loans to trusted partners.

If you are considering a reverse mortgage, please feel comfortable in contacting us for a trusted referral!

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