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.