Reverse Loans

The Pandemic

The last 18 months of life for everyone has been very hard and uncertain due to the Covid-19 pandemic.   It was particularly frightening for seniors because they were more likely to become ill with it and possibly die.

No one was left untouched by it, either by death or the loss of employment and most certainly the loss of structure and a feeling of safety.

I received many calls from seniors during this time, very afraid about running out of money and trying to take care of themselves, and at the same time, cut off from their families and feeling isolated.

Some had entered into forbearance agreements on their mortgages and the payments for them were paused, but they were now being notified by their Lender to resume them, and many did not have the income to start making payments again.

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I received many calls for help, and I was able to provide everyone a reverse loan and at the least, make them feel a bit safer and and less anxious about what was going to happen to them.

It was challenging when we couldn’t meet personally, but I made it work for each client and we got through it together.

I am grateful that it seems we are moving forward with more confidence and less fear, and I am also grateful that I was able to help many seniors last year by providing them with more money and peace of mind and we survived the pandemic together.

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Higher Reverse Loan Amounts

Effective this month and year, the HUD Lending Limits for FHA Reverse loans were increased from $765,600 to $822,375.00

This is quite a large increase over previous years and could possibly make a difference for senior borrowers who will now have more access to their home’s equity, than they would have had last year in 2020.

The Lending Limit caps a home’s value at this figure, even if a property is worth more, the reverse loan amount will always be calculated on the Lending Limit or the appraised value of the home, whichever is less and the age(s) of the youngest borrower.

For some seniors, this increase can make it now possible to do the loan, because the higher value will possibly provide them a larger loan amount that can pay off an existing mortgage with a high balance, whereas previously, the loan may have been not been adequate enough for refinancing an existing mortgage.

Mortgage interest rates are at the lowest they have ever previously been, and that includes the interest rates on reverse loans, too.  And in addition to very low rates, home values have increased substantially, creating more equity for many homeowners.

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Whether it is Fixed loan or a Line of Credit, FHA HECM, or one of the Jumbo reverse loans, now is the best time to apply for one,take advantage of  low interest rates, and also the increased value of your home.

Use a reverse loan to  increase your cash flow and create a safety net for the future, and have funds for unplanned expenses, and gain peace of mind.

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Reverse Loan Consultant