Positive Changes from HUD – More Generous Reverse Mortgage Benefits Coming

HUD announced this week that the rules are changing for borrowers wanting to get a reverse mortgage.  These rules are positive changes much to the liking of older homeowners. 

First, borrowers who have spouses that are younger than 62 can now get a reverse.  In fact the new Principal Limit Factor is calculated all the way down to 18 years of age (don’t laugh its true).  The new PLF tables now include figures for ages under 62 following a decision by HUD to allow for non-borrowing spouses of new reverse mortgage borrowers to remain in their homes following the passing away of the borrower, under certain terms and conditions. The PLFs reflect loans for borrowers who are age 62 and older, but also loans for married couples where one borrower does not meet the traditional 62 year old age requirement.

Secondly, borrowers who are 64 and older will see their benefits increase.  Younger ages will see slight increases (less than 1%) but older borrowers will see up to a 9% increase.

These changes are effective for applications dated August 4, 2014 and later.  Call me (510.701.2167) or email me (LM_Appel@yahoo.com).  I will be happy to discuss with you.

 

Advertisements

About Marty Appel

I work with clients who are looking to purchase a home or refinance their existing mortgage using the FHA HECM (Home Equity Conversion Mortgage). I have developed a specialty with over 14 years’ experience in reverse mortgages. I pride myself on my ability to assist older homeowners navigate the reverse mortgage process with ease and confidence. I help seniors improve their financial future and remain in their homes. My technical knowledge of FHA rules and lender policies help clients avoid the pitfalls in the loan process experience. My passion and longevity make me an excellent source of valuable information about everything there is to know about a reverse mortgage.
This entry was posted in Reverse Mortgage. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s