FHA Reverse Loan

Need More Money from a Reverse Mortgage?

Since my previous posts, additional Reverse loan lenders are planning on releasing their own proprietary reverse loans and although I don’t have much in the way of details as of yet, I will know more tomorrow after attending a webinar on it via UFA.

I am not exactly excited about the Jumbo loan as of yet, until I see the details and how much they may allow a homeowner to receive.   Previous Jumbo reverse loans were very conservative on the LTV ratio and I’m wondering if the newer ones will be any different.

Here is part of an article that discusses a few of the details on the Jumbo program from Urban Financial America, but at this time, I’m not hearing anything new in the description.   Just the standard qualifications as far as the age of the borrower and the various ways one can use the funds.

Urban Releases More Detail on HomeSafe Jumbo Reverse Mortgage
Posted By Elizabeth Ecker On September 2, 2014 @ 5:11 pm In American Advisors Group,Generation Mortgage,Jumbo Products,News,Reverse Mortgage,Urban Financial of America | No Comments

After announcing [1] in August it would enter the proprietary reverse mortgage market, Urban Financial of America this week released additional detail around its HomeSafe jumbo reverse mortgage, now available in four states.
The HomeSafe, which UFA is rolling out this week, offers borrowers with high valued homes the opportunity to borrow up to $2.25 million in loan proceeds—compared to the maximum lump sum option under the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) program of just shy of $470,000.

I will share the rest of this article in the next couple of days, as it’s too long for one post.

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Reverse Mortgages & Financial Planners

In the previous post, I mentioned how difficult it has been for me to speak with Financial planners or Advisors about Reverse Mortgages.   As I noted before, even though I was a member of their trade association, NAIFA & supported a local chapter, they would not give me an opportunity to educated them on how the FHA Reverse loan program could benefit their senior clients and frankly, increase their professional image.

Everyone was polite but not interested in what I had to share.

That is finally beginning to change and I’m quite relieved about it, because if a senior or the adult child of a senior is relying on a Financial Advisors guidance in this decision, sadly they may discourage them from considering the Reverse loan as a resource for additional tax-free income.

Here is the remaining article from Reverse Mortgage Daily:

FINANCIAL PLANNERS CONSIDER REVERSE MORTGAGES NOW BEFORE INDUSTRY CHANGES

While reverse mortgages are most commonly taken out by low- to middle-income seniors, they’re growing in appeal among other demographics, too, said one certified financial planner, noting a trend of more affluent people using the product as a planning tool to fund long-term care and supplemental life insurance.

“Their investments have taken a big hit, and if they have needs that have to be addressed, they’re looking to their house to fund it,” said Dennis Loxton, regional vice president of the reverse mortgage division of First Century Bank in Gainesville, Ga., in the article.

The exits of big-name lenders such as Wells Fargo and Bank of America also makes the future of the program unclear, it continues, going on to mention several industry lawsuits including deceptive marketing charges and allegations of illegal foreclosure procedures against spouses of deceased borrowers.

“While these headwinds are unlikely to cause the reverse mortgage industry to disappear, in the short run they will probably have a negative impact,” says Financial Planner, going on to predict the possibility of consolidation among bigger players, tighter underwriting standards, and higher fees.

The article also explains how the program works and runs through the pros and cons of reverse mortgages.”

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