Mortgage Blog

Reverse Mortgages - Government vs. The People - PLFs

Since October 2013, it would appear that our government has been grappling with the people over principal limit factors (PLFs), otherwise referred to as home equity access levels for homeowners with Reverse Mortgages. The government actions are clearly based on merit but their attempts to resolve internal issues have been questionable. The primary efforts have been targeted at providing equity access to homeowners while feverishly trying to maintain the solvency of the program based on Social Security life expectancy forecasts. Here in lies the problem. The Federal government is effectively ba...

January 3rd, 2018 | HECM Reverse Mortgage, Principal Limit Factor, Non-recourse loan, FHA, Reverse Mortgage, Reverse Mortgages - Government vs. The People - PLFs

Assessing the new Financial Assessments for Reverse Mortgages: Problem-Solution

The new rules will dramatically change the current government insured HECM Reverse Mortgage from a non-qualifying loan to one that requires qualifications and is subject to broad lender discretion.  You can be assured that the mortgage providers will be strict because they fear the ultimate wrath of FHA.  Regardless of interpretation they better get the new rules right or FHA will not insure their loans and they will be at risk.  Based on this, one can only expect that lenders supporting Reverse Mortgages will be conservative to ensure their own financial integrity.  You ca...

April 10th, 2015 | Retirement Planning, Reverse Mortgage, FHA, Financial Assessments, HECM Reverse Mortgage, Assessing the new Financial Assessments for Reverse Mortgages: Problem-Solution

HECM for Purchase

Statistics show a large number of home buyers paying cash for homes.  Is this the best strategy for retirees and older active adults?  Many people, regardless of their age, have been having difficulty obtaining a mortgage.  Once a mortgage has been granted, there is a monthly mandatory payment requirement.  This creates risk.In October 2008, FHA introduced a new innovative type of loan called HECM for Purchase. Very few people are familiar with this loan.  This is a government insured non-recourse, non-qualifying loan for home buyers 62+ that allows them to buy a ...

March 21st, 2014 | FHA, Government insured mortgage, Reverse Mortgage, Retirement Planning, Reverse to Purchase Mortgage, HECM Reverse Mortgage, HECM to Purchase, HECM for Purchase, HECM for Purchase

A Reverse Mortgage is Not a Construction or Property Rehab Loan

There appears to be a misconception in the market among some that a Reverse Mortgage can be used to solve any and all property and borrower ailments. This is categorically incorrect. A Reverse Mortgage is designed for a primary residence only and does not extend to second homes or investment property. A Reverse will allow up to ten percent (10) of the appraised value of the property for set asides to cover standard property repairs that may exist. Repairs eligible under this category do not include health, safety, and/or zoning issues. When a property reaches this state or re...

September 25th, 2013 | Reverse Mortgage, HECM Reverse Mortgage, solutions for underwater properties, FHA, Construction Loan, Hard Money Loan, Government insured mortgage, A Reverse Mortgage is Not a Construction or Property Rehab Loan

Important Changes on the Horizon for Reverse Mortgages

FHA and The Department of HUD have been authorized by congress to improve the HECM Reverse Mortgage Program. The legislation passed by both the House and the Senate authorizes HUD to improve the program, based on past assessments, so that it better serves the needs of the borrower. In my opinion, there is always room for safeguards to be added to the current Reverse program to protect the consumer. However, when we look at the proposed changes below, as noted in a recent July publication by NRMLA, we must ask if the proposed changes may become too restrictive and end up self defe...

September 2nd, 2013 | Reverse Mortgage, HECM Reverse Mortgage, supplemental retirement income, FHA, HUD, Important Changes on the Horizon for Reverse Mortgages

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Jefferson Mortgage Group LLC

2536 Leeds Rd.
Oakton, Virginia 22124
FAX: 703-773-6946
NMLS: 935554

Located in Fairfax County, Virginia. Serving all of Virginia, Maryland & Pennsylvania. 


Jefferson Mortgage Group LLC is licensed in Virginia, Maryland & Pennsylvania.
Virginia State Corporation Commission License Number MC-5659 and the Pennsylvania Department of Banking & Securities #46259 
Maryland DLLR License #21586

An Equal Housing Lender

By refinancing the consumer's existing loan, the consumer's total finance charges may be higher over the life of the loan.

This material is not from HUD or FHA and has not been approved by HUD or any government agency.