Effective January 1st 2009, FHA Reverse Mortgage Lenders are now able to finance the purchase of a senior’s new home with a HUD insured Reverse Mortgage. This program could be thought of as the “prudent down-no payment plan” for seniors age 62 or older wishing to purchase a retirement home. The home can be a single family to 4-plex, manufactured home or a condo. Values and purchase price may change per location of property.

Depending upon the senior’s age and value of the home, a down payment of 25% to 50% is usually necessary to purchase the home. The older a senior is, the less needed for a down payment. For instance, a 75 year old could purchase a new home appraised at $200,000 by putting approximately $74,000 down and financed the remaining $126,000 with a Reverse Mortgage. The senior would make no payments until he or she permanently leaves the home.

For more details, or to request an free illustration and outline of the new reverse mortgage purchase option, please call 1-888-973-8377 or Request an Information Packet.

Increased Reverse Mortgage lending limits! Older homeowners can now borrow up to $417,000 with federally insured reverse mortgages.

Now is the perfect time to see how much YOU qualify for. Use or free and easy online reverse mortgage calculator. It only takes a few minutes of your time to see how much cash a Reverse Mortgage can provide… CLICK HERE!

With the economic crisis hitting everyone, many seniors are considering taking a reverse mortgage. The days of quick refinances and plentiful home equity lines are a thing of the past.

Seniors took out 112,100 Home Equity Conversion Mortgages, a government-backed reverse mortgage, in fiscal year 2008, which ended September 30, up from 107,558 in 2007, according to the Department of Housing and Urban Development.

New rules went into affect in November that make reverse mortgages a better deal for consumers. Older homeowners can now borrow up to $417,000 with federally insured reverse mortgages. And the fees that lenders can charge were lowered to origination fees of 2 percent on the initial $200,000 of the home’s value (lesser of the home value or county lending limit) and 1 percent on the balance thereafter, with a cap of $6,000.

Find out how much you qualify for with a Free Reverse Mortgage Quote.

Recently at Reverse Mortgage News, we touched on the proposed changes to limits and restrictions on reverse mortgages. The post was titled: Reverse Mortgage Continued Growth. The article below discusses the changes. This is a very informative article.

New rules for the U.S. Department of Housing and Urban Development’s (HUD) Home Equity Conversion Mortgage program (HECM) are expected to make reverse mortgages more attractive to seniors when the changes become effective before the end of 2008.

The alterations include the adoption of a new single national loan limit of $417,000 for federally-insured reverse mortgages along with a cap on the fees lenders can charge for loans under the program.”

The reforms to the HECM program were approved this past summer as part of the Housing & Economic Recovery Act of 2008.

“By implementing these new provisions, HUD has improved financial options for senior homeowners during a critical time,” explained Peter Bell, President of National Reverse Mortgage Lenders Association (NRMLA).

“The new loan limit and other provisions will allow seniors to receive more benefits at lower origination costs to meet their retirement needs.”

Previously, the HECM program assigned different lending limits by county, ranging from $200,160 in rural areas to $362,790 in the highest home value areas.

The new HECM loans limits are effective on loans insured on or after November 6, 2008. This is the first time a single limit applies to these mortgages nationwide.

The new lending limit is expected to benefit senior borrowers if their home value is higher than the old HUD limits for their area.

Existing HECM borrowers may be able to increase their reverse mortgage benefit by refinancing their existing reverse mortgage. HUD is encouraging existing holders of reverse mortgages to contact their lenders.

“As far back as 2001, we began to question whether utilizing HUD’s area-by-area loan limits made sense for the HECM program,” explained Bell. “This change is the culmination of a seven-year legislative effort by NRMLA to enhance the HECM program.”

Another change to the program is the new HECM “For Purchase” program, which allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from a reverse mortgage.

The For Purchase program is designed to allow seniors to purchase a new principal residence and obtain a reverse mortgage within a single transaction by eliminating the need for a second closing.

The program will enable senior homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs.

In addition, properties previously excluded from the reverse mortgage program, such as co-op properties, will now be eligible for the HECM program.

The changes are expected to fuel growth in an already robust reverse mortgage market.

“Seniors recognize the value of using reverse mortgages to access the wealth they have accumulated in their homes to pay off existing mortgages and other debts (thus avoiding foreclosure in some situations), pay for healthcare, make needed repairs, or to supplement retirement income,” said Bell.

To read more about reverse mortgages, visit:
Reverse Mortgage
Reverse Mortgage Process
Reverse Mortgage Calculator
Reverse Mortgage Video

You can also learn more about reverse mortgages, visit the HUD Web site at:
http://www.hud.gov/offices/hsg/sfh/hecm/hecmhome.cfm.

ReverseMortgageNation.com recently added a Reverse Mortgage Video for all viewers, customers, and visitors to enjoy.

This video explains some of the most common features of a Reverse Mortgage and also has some great insight from Brett Carter.

The movie clip will load right in your browser and is the perfect amount of time.

View the video here: Reverse Mortgage Video

Contact a Reverse Mortgage Loan Officer with any additional questions.