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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