As a part of our ongoing service, we consistently look for ideas and resources that impact you as a caregiver, and the people you are providing care for. If you have been considering using a reverse mortgage to help fund your caregiving costs, you’ll be as interested as we were in learning how this product will be impacted under new laws in 2015. We’ve relied on Doni’s expertise before, and we wanted to share this new information with you here today.
Guest Post by Doni Dolfinger
The Department of Housing and Urban Development has announced that the financial assessment for reverse mortgage borrowers will begin with case numbers on or after March 2, 2015.
This means that homeowners that are applying for the reverse mortgage program will have to “qualify” wherein years past the qualification has been rather simple.
Currently the program does not scrutinize credit scores and income but rather equity in the home and the home’s ability to meet FHA guidelines. With the upcoming changes the days of “almost anyone 62 and over with adequate equity qualifies” is over.
This change will definitely prevent some potential borrowers from qualifying for a program that has been known in the past to “rescue” many older homeowners from financial disaster. Lenders will soon be required to review credit history, income verification, asset verification, residual income, extenuating circumstances, as well as the willingness and capacity to timely meet obligations, such as paying property taxes and homeowners insurance.
This will definitely cause slowdowns in the loan process as well as cause some homeowners, which may qualify for the program now, to be denied after March 2015.
If you have been considering a reverse mortgage it may be wise to investigate your options sooner than later, while the process is still relatively easy.
If you would like more information on the FHA Insured Reverse Mortgage or the changes that will begin in March of 2015, you may call Doni Dolfinger a Reverse Mortgage Specialist of over 20 years. She works for Universal Lending Corp. and may be reached at (303) 791-4786 or (303) 378-8905. License # 100017629 or NMLS# 266569. Regulated by the Colorado Division of Real Estate.