The Federal Housing Administration (FHA) announced changes to reverse mortgage guidelines. Reverse mortgages, also known as "Home Equity Conversion Mortgages" (HECM), allow homeowners aged 62 or older to remain in their homes by eliminating their mortgage payments, and in some cases provide supplemental income.
Previously, reverse mortgages required no credit history or minimum income. However, due to some homeowners failing to maintain property tax and insurance payments, the FHA now requires lenders to verify that these obligations can be met, and that borrowers meet credit guidelines.
While reducing the number of people who qualify, these changes ensure that this helpful loan remains available to qualified seniors in the future. For people who are considering a reverse mortgage, it is important to discuss how the loan can impact their family and estate, as well as what actions are necessary to assume responsibility for the loan or purchase the property later on.
As of this writing, survivors, beneficiaries or heirs of reverse mortgage properties can settle loans at a percentage of the balance owed, or purchase properties at 95 percent of the market value, within a specified lender timeframe (usually 30 days).
It's best to confirm these important acts at the time of qualification. If you or anyone you know has any questions about a reverse mortgage, please call Susie Redinger at 406-698-2905 or email me at firstname.lastname@example.org today. I'm always happy to help!
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