Reverse Mortgage Limit Increased for FHA HECM

By
Mortgage and Lending

The Housing and Economic Recovery Act, the housing bill, passed in July provided for increased loan limits to $417,000 for FHA's Reverse Mortgage, the HECM. The bill called for the limit to be increased to equal the Freddie Mac limit for a single family home.

FHA has interpreted this provision by setting a single, national loan limit of $417,000. This new limit was expected to be effective November 1, 2008, but several lenders have been authorized to process and close HECM loans at the higher limit effective immediately.

This is exciting news for many of the nation's seniors, opening the availability of reverse mortgage to many who previously were not qualified.

FHA HECM reverse mortgages offer seniors the highest payout, significantly higher than is available with the conventional loan version, called

Reverse mortgages "do not require repayment as long as the home is the borrower's principal residence."

Basic borrower eligibility requirements are

  1. minimum age 62
  2. own the home
  3. occupy the home as the primary residence
  4. participate in an approved HECM counseling session

Call for more details. 

Richard Smith
American Acceptance Mortgage, Inc
Toll Free 888-474-9920 Cell 423-280-0345
Home financing in Tennessee, Georgia, and Alabama.
Experience matters when it is your home loan.

American Acceptance Mortgage website, FHA, VA, Conventional Home Loans

Mortgage blog, TN, GA, AL real estate

Real Estate Purchase Loan

Real Estate Refinance Loan


FHA, VA, Rural Development, Reverse Mortgages, Construction Permanent, Renovation,
FHA Renovation, Mortgage Modification and Loss Mitigation

Mortgage lending offices located in Chattanooga, TN
rsmith@aamonline.com

Join me on LinkedIn, Facebook, Twitter

Posted by

Thank you for visiting. This is the professional blog for

Richard Smith
NMLS# 184479 TN# 104002 GA# 28928 

Conventional, FHA, FHA 203k, HUD $100 down purchases, VA, Jumbo VA, Rural Development, Jumbo, FannieMae Homepath, Home Equity Line of Credit (HELOC).
Lending in Chattanooga, Tennessee and Georgia for over 20 years.

Sierra Pacific Mortgage

Cell phone: 423-280-0345 Email: Richard.Smith@SPM1.com

Visit my website to inquiry about a home loan.

Read my most recent articles in Scotsman Guide.

This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Sierra Pacific Mortgage. 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Lending / Financial
Groups:
Georgia Real Estate
Tennessee Realtors - Join Hands
Tags:
reverse mortage
hecm
seniors
hecm loan limits
housing law

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the woman to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
199,865
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Director of Property Management

Richard,

Thanks for the post. This is great news. I had been told by a Wells Fargo rep that if a parent has been living in the home for at least five years and that it is their principal place of residence, that a reverse mortgage could be done conventionally. Does FHA HECM have the same provision?

Oct 24, 2008 07:19 AM #1
Rainer
116,572
Bo Hussung
Bell Title /Triserv LLC - Nashvle, TN

Richard, now all you have to do is partner with a reverse moortgage professional that not only uinderstand them, but can close them without incident.

Good information and potential opportunity increases.

Bo

Oct 24, 2008 01:15 PM #2
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the envelope to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
207,718

Richard Smith

FHA VA Rural Development in TN GA
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: