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.

New Pamphlets Issued

Updates for many of the reverse mortgage handbooks and guides for information have now been published and are available. These publications are designed to more easily explain how a reverse mortgage can benefit the senior home owner:
Reverse Mortgage Loans - Borrowing Against Your Home (An AARP Publication)
Just the FAQs: Answers to Common Questions About Reverse Mortgages (A NRMLA Publication)
The NRMLA Guide to Aging in Place (A NRMLA Publication)
All of these publications should be read before you go to or call for your counseling session. Locations for counseling can be obtained be visiting http://www.washingtonreverse.com/ and clicking on "Counseling".

WARNING: 2010 Census Cautions from the Better Business Bureau

Be Cautious About Giving Info to Census Workers

With the U.S. Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but cautious, so as not to become a victim of fraud or identity theft . The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country. Eventually, more than 140,000 U.S. Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data.
The big question is - how do you tell the difference between a U.S. Census worker and a con artist? BBB offers the following advice:

**If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice . Ask to see their identification and their badge before answering their questions. However, you should never invite anyone you don't know into your home.

** Census workers are currently only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the U.S. Census.

While the Census Bureau might ask for basic financial information, such as a salary range, the Census Bureau will not ask for Social Security, bank account, or credit card numbers nor will employees solicit donations.

Eventually, Census workers may contact you by telephone, mail, or in person at home. However, the Census Bureau will not contact you by Email, so be on the lookout for Email scams impersonating the Census..

Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau.

For more advice on avoiding identity theft and fraud, visit http://www.bbb.org/ .

SHARE THIS INFO WITH FAMILY AND FRIENDS..