Pete The Loan Guy

Reverse Mortgages

Good news for 2010

1) FHA lending limit for FHA Reverse Mortgages (HECMs) is 625,500 extended throughout 2010
2) HUD-mandated counseling for borrowers is improved to keep seniors safe (some overkill---think RESPA) but overall a positive for consumers
3) Reverse mortgages remain a viable option for seniors who need to tap their equity to pay off existing mortgages or other debilitating debt, provide for home care services, or just offer more choices to enhance their retirement years---and allow them to live in their homes with no repayment due until they die or move
4) A new reverse mortgage used to purchase a home with either variable or fixed (5.56%) interest rates, requiring a substantial down payment from the borrower, but leaving them with an easier cash flow---no further payment required