Reverse Mortgage Information

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SUBJECT: Home Equity Conversion Mortgage (HECM) – Principal Limit Factors (Lower Loan To Values on Reverse Mortgages effective October 1, 2009)

HUD Mortgagee Letter

The Department of HUD just issued Mortgagee Letter 2009-34 which effectively cuts by about 10% the amount of fund available to senior homeowners who wish to obtain a reverse mortgage.  This will effect all new reverse mortgage loan applications that do not have a case number issued prior to October1. 

How this impacts my realtor friends here in the Inland Empire is that any senior homebuyers interested in using a (HECM) Reverse Mortgage for Purchase will now have to put about 10% more down.

Here is the link to the mortgagee letter: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-34ml.doc

 

 

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By Deborah Nance

NMLS#202003

Your Local Southern California Reverse Mortgage Professional

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Equal Housing Lender

iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin. 

Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.

Comment balloon 3 commentsDeborah Nance • September 23 2009 05:23PM
SUBJECT: Home Equity Conversion Mortgage (HECM) – Principal Limit…
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The Department of HUD just issued Mortgagee Letter 2009-34 which effectively cuts by about 10% the amount of fund available to senior homeowners who wish to obtain a reverse mortgage. This will effect all new reverse mortgage loan… more