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February, 19 2013 - by chad

A Kiplinger magazine Q&A column addressed the question of what happens in the case of a reverse mortgage borrower who owes more on the home than the home is worth. For those who find themselves in this “underwater” scenario, Kiplinger’s columnist answers, there’s no need to worry.

The Kiplinger reader writes:

“My aunt, who lives in Las Vegas, has a reverse mortgage that she took out in 2006, when her home was valued at more than $250,000. The home is now worth just $85,000. If she dies while the home’s value is ...

February, 6 2013 - by chad

We all know the biggest benefit to an FHA reverse mortgage is that you do not have to make any mortgage payments for the life of the loan.  The homeowners still make payments for insurance and taxes and must keep their home in good repair, but no mortgage payments are required.  In fact, I would discourage any reverse mortgage holder from making payments unless that person is certain they will be able to pay off the balance in full.  Making payments on a loan they intend to maximize by staying ...

February, 1 2013 - by chad

This week HUD announced it will consolidate its Standard Fixed-Rate Home Equity Conversion Mortgage (HECM) and Saver Fixed Rate HECM pricing options. That means there is one less option for homeowners 62 years of age or older to access the equity in their property.  This change will be effective for FHA case numbers assigned on or after April 1, 2013.   More info to follow in February, but certainly give me a call if you would like to understand the implication of these changes.

January, 17 2013 - by chad

If you are looking to do an FHA reverse mortgage and your home is in a trust, you will need to pull it out of the trust before your reverse mortgage can be closed and funded.  Getting your house out of the trust is pretty easy, but it does take some time for the title and tax records to reflect the change.

January, 15 2013 - by chad

Big news for Texas home buyers!  You may have a new loan program for purchasing a home.  Earlier this week Senator John Carona filed Senate Joint Resolution 18 to authorize reverse mortgages for home PURCHASES in Texas.  If the bill is approved in November, Texas home buyers 62 years of age or older will be able to use an FHA reverse mortgage to purchase a home, not just refinance it.  For example, say you have $100,000 cash to purchase a home and you do not want a mortgage payment.  In that ...

January, 10 2013 - by chad

Effective immediately, our investors will no longer close, fund, or purchase FHA reverse mortgage loans that include a non-borrowing spouse.  The only exceptions include a non-borrowing spouse who has never been on title OR a non-borrowing spouse who can document that they do not occupy the property and do not have any community property rights to the property.  We believe this change has been made due to younger spouses being removed from title in order for the borrowing spouse to get an FHA reverse mortgage.  To date that was acceptable, ...

June, 18 2012 - by chad

This is a great article about reverse mortgages, it answers a lot of common questions and concerns. If you still have questions or are interested in starting the reverse mortgage process please contact us and we will be happy to assist you.

November, 7 2011 - by chad

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.” ...

November, 4 2011 - by chad

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

October, 26 2011 - by chad

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 ...