Mortgage Blog

Why a Reverse Mortgage Could Be Right for You

If you’re short on cash in retirement but do have equity in your home, you might want to get a reverse mortgage, says Jane Bryant Quinn, author of How to Make Your Money Last: The Indispensable Retirement Guide. New rules for reverse mortgages have removed some of the pitfalls that made them problematic in the past. The rules for reverse mortgages have certainly changed.  The program is much safer than in the past primarily because FHA has placed parameters on the program that don’t allow homeowners to stray from a constructive path.  This has been a very positive move...

May 18th, 2016 | Seniors, Reverse Mortgage, Retirement Planning, Retirement security, reverse credit line, HECM Reverse Mortgage, Financial Assessments, Why a Reverse Mortgage Could Be Right for You

How to Determine if a Reverse Mortgage is right for you.

I would like to comment on this Washington Post article to put aside the guess work and focus directly on what a reader or potential homeowner should realistically expect from a reverse mortgage given this situation.  Here's the facts.  The problem cited was that the homeowner has fallen behind on their property taxes.  This occurrence within the past two years will trigger a LESA.  This is an automatic escrow or otherwise termed “life expectancy set aside” for applicable real estate taxes and insurance.  This will consume a significant portion of the o...

April 25th, 2016 | Financial Assessments, HECM Reverse Mortgage, Retirement Planning, Retirement security, Seniors, Reverse Mortgage, supplemental retirement income, LESA, How to Determine if a Reverse Mortgage is right for you.

Are you Eligible for a Reverse Mortgage?

Qualifications for HECM Reverse Mortgages have gotten tougher since early 2015.  FHA’s addition of financial assessments has shifted the main emphasis from age and property value to residual income, credit and debts.  The issue is less about eligibility and more about a restricted versus unrestricted approval.  When a home owner has been approved and the financial assessment guidelines have not been completely met, they often receive a restricted approval that requires a Life Expectancy Set Aside or otherwise termed a LESA (see my earlier blog on LESA) .  This is...

February 23rd, 2016 | Retirement Planning, Reverse Mortgage, Seniors, supplemental retirement income, Financial Planning, Financial Assessments, HECM Reverse Mortgage, LESA, Eligibility for Reverse Mortgage, Are you Eligible for a Reverse Mortgage?

The State of the LESA - HECM Reverse Mortgages

The overriding goal of a Reverse Mortgage is to allow retirees and seniors to help themselves in retirement.  You can think of this as a means of financial mobility with a loan program that has been specially designed for this demographic in an otherwise very stringent environment where credit may not necessarily be readily available.  Within this arena, the past year has brought changes to the Reverse Mortgage program that have significantly altered the landscape for retirees and seniors seeking eligibility for home equity access in retirement.  The new word of the day is LE...

January 10th, 2016 | Retirement Planning, HECM Reverse Mortgage, Seniors, Reverse Mortgage, Financial Planning, Financial Assessments, LESA, Retirement security, The State of the LESA - HECM Reverse Mortgages

Now it's tougher to get a Reverse Mortgage.

It is in fact now much tougher than in the past to get a Reverse Mortgage.  The key to success for retirees and seniors going forward seeking a Reverse Mortgage is to plan.  In short, don’t wait until you have spent your last dollar before you decide to apply for a reverse.  The loans are now being scrutinized for risk and not everyone is going to be eligible.  A plan could be as simple as inquiring six to twelve months ahead of time before the basis for need becomes funds of last resort. If you want to maximize your chances of obtaining a reverse mortgage, start with...

May 27th, 2015 | Reverse Mortgage, Retirement Planning, HECM Reverse Mortgage, Financial Assessments, Now it's tougher to get a Reverse Mortgage.

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

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Jefferson Mortgage Group LLC

2536 Leeds Rd.
Oakton, Virginia 22124
703-319-2198
FAX: 703-773-6946
info@jeffersonmortgage.com
NMLS: 935554

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

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Jefferson Mortgage Group LLC is licensed in Virginia, Maryland, DC & Pennslvania.
Virginia State Corporation Commission License Number MC-5659 and the Pennsylvania Department of Banking & Securities #46259 
The DC Department of Insurance, Securities, and Banking License #MLB935554
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.