This Reverse Mortgages NEWSFLASH just in: HUD issued a Mortgagee Letter last week that will affect anyone In Retirement, or Nearing Retirement, who owns a home OR is hoping to Buy a Home.
For some homeowners, the initial mortgage insurance premium (IMIP) is increasing on the FHA-insured Home Equity Conversion Mortgage (HECM) – also commonly known as “reverse mortgages.”
This loan is specific to homeowners and home buyers over the age of 62.
For ALL homeowners, the amount you can borrow will be cut by 10%.
This is particularly time-sensitive if you need the maximum amount of funds in order to pay off an existing mortgage, thereby permanently eliminating your monthly mortgage payment, OR TO DOWNSIZE AND PURCHASE A NEW HOME that better suits your retirement needs, without ever having to make a monthly mortgage payment.
As always, change can be bittersweet. While some of the changes are positive for some homeowners, the HUD’s new HECM program guidelines suggest some homeowners will want to act swiftly to secure their HECM counseling session before September 20, 2017.
If you currently own a home and have an existing mortgage debt that you would like NOT to have to make monthly payments on, or if you have planned to obtain a HECM refinance to gain access to more of the equity in your home (as a federally-insured reverse mortgage line of credit) anytime in the next five years, this message is for you.
I cannot stress enough the importance of calling to secure the counseling appointment right away. For a head start, click HERE.
Call or email me if you would like to discuss this change. My goal is to make sure everyone has the opportunity to take advantage of the current program offerings if that is your choice. I will answer all of your questions and email or mail you an updated proposal and counseling packet to include the list of counselors with whom you can arrange your one-hour session, in person or by phone.
There is an 8-day waiting period for reverse mortgages in California from the date of counseling to the date when you can apply.
In other words, the counseling session needs to be completed within the next few weeks in order to insure we can help you complete your application a week later, and get your FHA case number issued on or before October 2, 2017.
Anytime there is a change in HUD’s Home Equity Conversion Mortgage (HECM) program, the counseling agencies get completely slammed and appointment times become scarce. This is already occurring. If you have completed your counseling session, the application submission is time-sensitive.
Please let me know if I can be of assistance. I look forward to helping you in any way that I can.
Warmly, Mary Jo
Mary Jo LaFaye is a Reverse Mortgage Specialist based in San Rafael, California.
For more information on reverse mortgages, visit MaryJoLafaye.com