Mortgage Blog

HECM Reverse Mortgage Lending Limit increased to $822,375

What does this mean for you?  A higher limit will accommodate higher home prices and allow for higher home equity access across the board for all eligible age groups going forward. Higher equity access means the HECM has become a more flexible tool for retirement planning for all eligible retirees and seniors. It will also potentially allow for increased home equity access for homeowners that were previously on the fence, or otherwise termed “threshold of loan eligibility”.  This may allow people in this position, that also meet all other eligibility requirements, to now ...

January 26th, 2021 | 2021 Changes, HECM Changes, HECM Reverse Mortgage, Eligibility for Reverse Mortgage, Seniors, Reverse Mortgage, reverse credit line, Age in Place, HECM Reverse Mortgage Lending Limit increased to $822,375

Reverse Mortgage Success Despite Credit Problems

Getting a Reverse Mortgage for a homeowner with an unrestricted approval versus a restricted approval due to credit problems, even some that are very minor, can often be challenging. The program has become much stricter regarding credit incidents since the 2017 changes.  In many cases, an unrestricted approval will not provide enough equity access for someone to actually be able to consummate the loan so you have to plan to avoid this at all costs.  Conversely, even if there is still enough equity access, the homeowner will not be happy in the majority of the cases with the big gover...

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October 13th, 2020 | Reverse Mortgage, HECM Reverse Mortgage, Seniors, HECM Changes, Retirement Planning, Age in Place, Unrestricted Approval, success story, Reverse Mortgage Success Despite Credit Problems

The Jumbo Reverse Advantage over the HECM Government Reverse Program for Retirees

In the last six months, I have gone from adamantly avoiding the private label Reverse Mortgage program offerings for my clients to being an admirer and an outright endorser. The new Jumbo Reverse program looks nothing like the old one.  The primary reason for this has been the radical change in the HECM that has forced competition within the private market.  This is an example of pure capitalism at work.  Radical changes within the government market opened the door for the private market to enter and grab market share.  The changes were brought on by a desire for the indust...

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August 22nd, 2018 | Jumbo Reverse Mortgage, HECM Reverse Mortgage, Eligibility for Reverse Mortgage, MIP, HECM Changes, The Jumbo Reverse Advantage over the HECM Government Reverse Program for Retirees

The New Jumbo Reverse Mortgage Advantage

After the radical changes the government insured HECM Reverse Program experienced last October, the private reverse market has really stepped up to its calling.  The private label Jumbo Reverse has become a very affordable and flexible loan program with a new emphasis on helping homeowners qualify with a much broader application spectrum.  As an example, today an eligible homeowner can use a Jumbo Reverse to buy a new home.  In the past, the private reverse programs were designed solely for refinancing and only as a second option when the HECM program was not available.  ...

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June 12th, 2018 | Jumbo Reverse Mortgage, HECM Reverse Mortgage, HECM for Purchase, private label reverse mortgage, The New Jumbo Reverse Mortgage Advantage

How the Government Can Improve the HECM Reverse Mortgage Program Without Changing It

The current version of the government insured Reverse Mortgage is much more restrictive than in the past with regards to how much equity is available to homeowners.  The latest changes that were enacted last October were directed at saving the government money from loan losses on property sales.  The real underlying problem has been longevity and how to forecast it while still offering a generous program to meet the needs of retirees and seniors.  After all, these two groups need a flexible means of tapping into their piggy banks to supplement retirement and they aren’t li...

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May 8th, 2018 | Non-recourse loan, Reverse Mortgage, Retirement Planning, HECM Reverse Mortgage, How the Government Can Improve the HECM Reverse Mortgage Program Without Changing It

Private label Reverse Mortgages hit the Sweet Spot!

Private label reverse mortgages are hitting the sweet spot for higher priced homes in DC and the surrounding suburbs in Northern VA.  Many retirees have lived in their homes for a long time and have a very low cost basis.  They are comfortable and they don’t necessarily want to sell or downsize.  In addition, their home provides fond memories of family and is still a place where everyone gathers and feels at home.  Until recently, all homeowners with higher priced homes that have appreciated over the decades have pretty much been relegated to the HECM governme...

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January 23rd, 2018 | Jumbo Reverse Mortgage, Reverse Mortgage, HECM Reverse Mortgage, Age in Place, Eligibility for Reverse Mortgage, Private label Reverse Mortgages hit the Sweet Spot!