This program was first launched under President Ronald Reagan to assist senior homeowners pay off their mortgages and other debts. It also allows seniors to take out cash for any reason including long term health costs, home improvements or to supplement their monthly income. In the past, the loan approval process was simply based on these factors: Your age and the value of your home. There was no requirement to prove your level of income or creditworthiness. Even if you had credit issues including a bankruptcy or foreclosure in the past, you could still get a reverse mortgage.
Staring March 3rd , all that is going to change. If you apply after that date you will be approved for a reverse mortgage based on your income, debts and credit rating. If your credit or income as shown on your tax return is not sufficient to meet the new guidelines set by FHA, the reverse mortgage lender will be required to hold back some of your loan proceeds to pay for future property taxes and property insurance. This might lower the amount you receive from a reverse mortgage by a large amount. Experts estimate that as many as 30% of the people who are now eligible for a reverse mortgage will no longer qualify after these new rules go into effect.
There is still time to apply under the existing guidelines, but you have to move fast. If you are interested in getting information on reverse mortgages and how they may be able to help you, I urge you to contact United Mortgage Bankers at www.smartmoneyreverse.com or call them at 855-979-0502 or 631-396-1809 and ask for Russell Silver.
As most of you know, a home has become one of the largest investments people make.
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