The Housing and Economic Recovery Act, the housing bill, passed in July provided for increased loan limits to $417,000 for FHA's Reverse Mortgage, the HECM. The bill called for the limit to be increased to equal the Freddie Mac limit for a single family home.
FHA has interpreted this provision by setting a single, national loan limit of $417,000. This new limit was expected to be effective November 1, 2008, but several lenders have been authorized to process and close HECM loans at the higher limit effective immediately.
This is exciting news for many of the nation's seniors, opening the availability of reverse mortgage to many who previously were not qualified.
FHA HECM reverse mortgages offer seniors the highest payout, significantly higher than is available with the conventional loan version, called
Reverse mortgages "do not require repayment as long as the home is the borrower's principal residence."
Basic borrower eligibility requirements are
- minimum age 62
- own the home
- occupy the home as the primary residence
- participate in an approved HECM counseling session
Call for more details.
Richard Smith
American Acceptance Mortgage, Inc
Toll Free 888-474-9920 Cell 423-280-0345
Home financing in Tennessee, Georgia, and Alabama.
Experience matters when it is your home loan.
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FHA, VA, Rural Development, Reverse Mortgages, Construction Permanent, Renovation,
FHA Renovation, Mortgage Modification and Loss Mitigation
Mortgage lending offices located in Chattanooga, TN
rsmith@aamonline.com
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Richard Smith Conventional, FHA, FHA 203k, HUD $100 down purchases, VA, Jumbo VA, Rural Development, Jumbo, FannieMae Homepath, Home Equity Line of Credit (HELOC). |
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Richard,
Thanks for the post. This is great news. I had been told by a Wells Fargo rep that if a parent has been living in the home for at least five years and that it is their principal place of residence, that a reverse mortgage could be done conventionally. Does FHA HECM have the same provision?
Richard, now all you have to do is partner with a reverse moortgage professional that not only uinderstand them, but can close them without incident.
Good information and potential opportunity increases.
Bo