Reverse Mortgage Loan Limits Rise By More Than $365,000.

Seniors with large homes who have been waiting for higher loan limits will be pleased to know that the Congress has effectively doubled the FHA loan limit, meaning that far-larger FHA reverse mortgages (HECMs) are now available.

The old FHA loan limit was $362,790 in the lower 48 states. The stimulus package passed by Congress and signed by President Obama increases the FHA mortgage limit to as much as $729,750 for single-family homes in “high-cost” areas. Since an estimated 90 percent of all reverse mortgages are insured under the FHA HECM program, this means that vastly-larger loans will be available through reverse mortgage financing under the new standard.

This is great news for many of my Reverse Mortgage clients that have homes of high value that had decided to wait on the program because they could not access as much of their equity as they wanted.

Example from this week of how this lending limit has helped:

I have a borrower that owns a home with no mortgage in Sandy OR. The home is worth over $600,000, and with the old lending limits he was only able to access $295,000. Now, with the new lending limits his available funds have increased by almost $100,000. The lending limit increase is a great benefit from the new stimulus package.

Be sure to contact me today if you would like to see how a Reverse Mortgage can benefit you at BHusen@Sunsetmortgageco.com.

Portfolios Sliding Create New Interest in Reverse Mortgages

I had recently posted an article about my visit with a weekly book club. They had asked me to join them for a Q&A on Reverse Mortgages. One members driving factor for considering a Reverse Mortgage was to find a way to save money with the falling stock market eating away at her investments.

I found a great article today in the Oregonian’s business section that was addressing this very issue. The article was titled “Reverse mortgages more appealing as portfolios slide”.

I was thinking how timely this was, as I was just discussing this couple weeks ago.
The article goes on to state how Reverse Mortgages have been growing fast in popularity for this very reason. As of this month, over 100,000 homeowners have taken out a reverse mortgage in 2008.

If you would like a copy of this news article, please let me know. I can email it to you or mail you an physical copy.

To find out if a Reverse Mortgage is right for you, please contact me today at BHusen@Sunsetmortgageco.com.

Book Clubs and 401k's

Recently a realtor I work with invited me to speak at a book club she has been a part of for many years.

“Speak about what?” I wondered at first as I have never been in a book club.

Turns out there were two seniors in this group that wanted to learn more about Reverse Mortgages in a one on one setting.

I have been involved in a few larger workshops as a presenter to an audience of 30 or more people. Those types of presentations are great for the masses, but I think one on one or small group settings are the best.

Smaller groups don’t need power point projectors. No microphones. No stadium seating. Just me, front and center in the living room, explaining all aspects of a reverse mortgage.

Reverse Mortgages are getting more attention every day. There’s many reasons senior citizens are considering them today. Take this evening at the book club for example:

• Helen is in her 80’s and made her last payment of a 30-year mortgage only sixty days ago. Now she is looking at her possible options to use the homes equity in her favor. Her main excitement being there is no monthly payment to repay, as she is on a fixed income.
  
• Patti on the other hand owns a condo with plenty of equity. Her concern was that her retirement is tied up in their stock accounts. With Wall Street in such turmoil, and with her recent losses in her portfolio, she is debating what to do? Sit still? Pull her money out at a loss and pay tax penalties?
  A great option for her could be a Reverse Mortgage. She can create a credit line and only draw on its funds when needed.

Remember the “The Big 3” advantages of a Reverse Mortgage.

1. No Credit Score Requirements
   
2. No Income Requirements.
   
3. No repayment of the loan till the borrower leaves the primary residence.

Call me today if you would like a one on one to discuss Reverse Mortgages. Either in my office or in your living room.

Bryan Husen