Last week the U.S. Senate passed a $182 billion spending bill for fiscal year 2012 that reflects a bill passed by the Senate Appropriations Committee in September.   The bill includes the restoration of funding for housing counseling programs under HUD, including counseling for seniors obtaining a reverse mortgage.  According to the executive director of the Coalition for Independent Seniors (CIS)  “America’s seniors, looking to capitalize on their equity wealth to maintain their financial independence will still have access to consumer protections like housing counseling if this bill becomes law.” ...

The National Council on Aging (NCOA) has a great booklet on how to use the equity in your home to obtain a reverse mortgage and therefore be able to continue living in your home.  Use the following link to download the PDF copy of this booklet:  Download Here

I was running early this morning and as usual, thinking about my mortgage business.  Why do people do business with me, my team, and my company?  I think I finally have it down to three key reasons.

The first is EXPERTISE.  Most lenders basically do everything, but don’t build up a solid niche for which they can consider themselves true Specialists.  I have focused on VA and Texas Vet financing since 2004, ensuring my clients get the correct information the first time and benefit from the programs for which they are ...

As the saying goes here in Texas, “Once a cash out, always a cash out.”  What that means to us in the mortgage business, is that once a Texas homeowner takes out a home equity loan or line of credit on his or her primary residence, the only loan they can get in future on that property is going to be a Texas cash out (A-6) loan.  A standard “rate and term” refi is no longer an option and you are limited to refinancing every 12 months.  HOWEVER, there is ...

Just a quick post to mention some of the most useful websites for information on FHA reverse mortgages:

AARP

Dept. of Housing and Urban Development (HUD)

Federal Housing Administration  (FHA)

Federal Trade Commission (FTC)

National Association of Area Agencies on Aging (NAAAA)

National Council on Aging (NCOA)

National Reverse Mortgage Lenders Association (NRMLA)

What’s the difference between a reverse mortgage and a bank home equity loan?

With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home, sales price or FHA’s mortgage limits, ...

This week my team funded two reverse mortgages that are both very good examples of what an FHA reverse mortgage can do for someone who is eligible for the program.  Both women are widows and own their own homes.  They are both in their 70′s and both lost their jobs earlier this year and have had trouble finding new ones (and they don’t really want to do that anyhow).  They both have fixed income that covers their basic living expenses, but not enough to cover their monthly mortgage payments without ...

We get this question just about every day:  What credit score do I need to buy a house?  Minimum credit scores can and do vary by lender, but here’s our current minimum credit score requirements for all of our major loan programs:

Conventional Purchase = 620
Conventional Refinance = 620
FHA Purchase = 620
FHA Refinance = 640
FHA Reverse Mortgage = None
Texas Vet Purchase = 620
USDA Purchase = 620
VA Purchase = 620
VA Refinance = 640

For seniors using an FHA reverse mortgage to turn their home equity into tax-free income and/or to permanently get rid of their current mortgage payments, I have good news.  Our company just announced today that we can do a reverse mortgage on a home with an appraised value of as low as $50,000.  Our previous minimum was $100,000.  One caveat, however, is that we still do not provide any type of financing on manufactured, mobile, or modular homes.  Click here for more information on the ...

It’s official…. United Lending is now offering FHA reverse mortgage in-house.  We have actually offered them for years through our parent company, Network Funding, but those reverse mortgages were brokered out to another company.  Not anymore.  We are now offering in-house FHA reverse mortgages originated and processed right here at United Lending in Austin.  If you are at least 62 years of age and you have at least 30% equity in your home, you may be able to turn that equity into tax-free income using an FHA reverse mortgage.  For ...