Contrary to my Twitter comment, the correct amount is $625,500 that’s what happens when you’re dyslexic! As of today the new nationwide lending limit for Reverse loans will be the figure I just mentioned.
This additional amount of money will help many seniors who are strapped for funds and desperately hanging on without any other options and it will take away the pain of not having enough money to make house payments, medical expenses or any other bills that they are obligated to pay on each month.
I have been making a number of phone calls today, doing calculations for many people who have been waiting for this to happen and hopefully they still have enough equity to do a Reverse mortgage. Sometimes I run into those situations where the client had done so many cash-out refinances, that they no longer have enough equity to even do a Reverse loan and then I can’t help them.
This latested development will create a surge in new applications as the demand for the loan continues to increase due to the current economic situation and every senior who has been waiting for this moment, will apply for the loan.
HUD requires that the applicants do counseling and I’m just betting that the counseling agencies are already getting a lot of calls to set up appointments. And this will probably cause a slow down in their ability to set them right away and undoubtedly there will be some sort of backlog on meeting the demand from the agencies.
Now is an excellent time to move forward on applying, as the rates are the lowest that I have ever seen them in the last several years. If a senior has been hesitating due to fear, it’s time to do the counseling, get educated and move forward on taking charge of their life.
Quote: “Sometimes I run into those situations where the client had done so many cash-out refinances, that they no longer have enough equity to even do a Reverse loan and then I can’t help them.”
Even with higher limit, hopeless cases will still be around. It will be tough, but I believe we all have done our best in helping our senior citizens, right Lorraine?