2016 Reverse Mortgage News


If, after considering other housing options, you have decided to remain in an eligible home or to move into a new home, you may want to consider a Home Equity Conversion Mortgage (HECM) – more commonly known as a reverse mortgage – as a source of retirement income.
Any discussion of reverse mortgages as a retirement income tool has typically focused on real or perceived negatives related to traditionally high costs and potentially inappropriate uses for these funds. These conversations often include misguided ideas about the homeowner losing the title to their home and hyperbole about the American Dream becoming the American Nightmare.
However, developments of the past decade have made reverse mortgages harder to dismiss outright. The federal government has been refining regulations for its HECM program since 2013 in order to:
– improve the sustainability of the underlying mortgage insurance fund;
-better protect eligible non-borrowing spouses,
-ensure borrowers have sufficient financial resources to continue paying their property taxes, homeowner’s insurance, and home maintenance expenses.
For heirs wishing to keep the home, a larger legacy offers an extra bonus of additional financial assets after the loan balance has been repaid. The home is not lost.
As the government continues to strengthen the rules and regulations for reverse mortgages and new research continues to pave the way with an agnostic view for their role, reverse mortgages may become much more common in the coming years. Many Americans rely on home equity and Social Security as the two primary available retirement assets.

Credit to Wade Pfau via Forbes February 11, 2016


2015 December Mortgage News


The Federal Housing Administration released its maximum mortgage limits for 2016 on Wednesday. Limits are increasing for 188 counties because of home price changes, and no counties will have decreasing loan limits.
FHA’s loan limit floor — which is 65% of the Federal Housing Finance Agency’s conforming loan limit — is still $271,050. The ceiling will also stay at $625,500.
The administration calculates loan limits annually by using a value worth 115% of the median home price in each area. The updated limits kick in on Jan. 1.
For a list of the 188 counties with new loan limits, click here.

Credit to Crissinda Ponder via December 10, 2015