Current Loan Limits Extended

HUD has decided to extend the current loan limits of $625500 through the end of 2011. There had been talk about reducing the loan limits for HECM transactions to $417000. This would have resulted in hundreds if not thousands of seniors being forced to accept lower princible benefit calculations on their reverse mortgage loans. With rates low and a few months of the higher loan limits, now is a great time to consider your options for a reverse mortgage. Visit http://www.washingtonreverse.com/ for your free reverse mortgage analysis, list of HUD approved counselors, and many reverse mortgage consumer booklets.

Aberdeen Reverse Mortgages

A new link for seniors in the Aberdeen, Hoquim, Westport, and Grays Harbor County area:
Aberdeen Reverse Mortgages: First Priority Financial (800) 710-9502

County Limits May Effect Your Loan

The next go around with the HUD County Loan Limits is reportedly going to see a decrease in many counties throughout the U.S. and this will effect the reverse mortgage principle limit. Your reverse mortgage is based upon your home value and your age but in some cases, it is also effected by the HUD limit for the county the home sits in. For instance, currently in Pierce County and King County WA, the HUD limits are $625,000. This means that even if you have a million dollar home, your reverse mortgage loan basis will be set based upon the county loan limit and then your age plugged into the calculation. A lowering of the county limits will lower the amount of your loan.
If you are considering a reverse mortgage, now is a great time to consider your options and have your benefit at current maximums instead of seeing that lower amount.

Free Counseling Leaving Soon

With all of the talk about trimming the economy, there are a few items that will effect seniors looking for reverse mortgages. The cost of HECM Reverse Mortgage Counseling is typically going for about $125 right now but many counselors have been providing this service free of charge since the government has been subsidizing this. A recent report indicated that the money for this subsidy is running out and will be gone by October 1.
If you are thinking about a reverse, moving forward now may be a good bet since there are currently several counseling locations offering it for free. More money in your pocket.

Important Tips for a Successful Reverse Purchase

Generally, there is no qualifying for a reverse mortgage like there is on a forward mortgage. It does not matter what the credit is like or the amount of assets. However, when using a reverse mortgage to buy a home there can be a couple of conditions that are needed to be addressed should you want to retain an existing home instead of selling it.
Assets needed to close the loan will need to be verified. These funds still need to be sourced and a clear picture of where the funds came from will need to be established through a paper trail of bank or investment statements.
If your existing home is going to be rented out now and retained, the underwriter will also need to see that there is enough income to make that mortgage payment if there is one.  This is a key underwriting condition that some loan officers overlook and it could present problems if not addressed.

New Year Bringing Changes and Higher Rates

Rates are on the rise as we head into a new year. For the last couple of weeks we have seen both forward and reverse mortgages swing upward. No longer are analysts talking about lower rates. The push is for an improved economy and that can only be accomplished if companies are getting more profits (that's more interest, for those with mortgages).
Overall, rates are still historically low and now is a great time to check on what is available for your own personal situation. Whether a reverse mortgage will benefit you or not all starts with getting an free analysis from a good reverse mortgage originator.
More changes are coming next year and I will keep you informed as we move ahead.

More Lenders Offering HECM Purchase Loans

Although there was a slow start to lenders offering the ability to purchase a home using a reverse mortgage, the industry is now coming on board with the idea of offering this unique loan program. Many seniors thinking of making a housing change and not wanting a mortgage have previously only been able to buy using the cash they had on hand or had within the equity of the home they were selling.
A HECM purchase loan allows a home buyer to buy a home with no mortgage payment. The money used for down payment is matched with the available reverse mortgage benefit allowing for either an ability to not use all your money or use all your money and buy more home. Check out WashingtonReverse.com for details on this great home buying loan program.