Are there changes afoot for the HECM for purchase reverse mortgage program?
Yes, it appears so. The new Federal budget, currently working its way through various committees in the Legislature, have reworked the HECM for purchase Reverse mortgage program to decrease the amount of funds that will be available to seniors in the reverse mortgage transaction. While some of the costs of the loan have actually decreased, this potential reduction in benefits could affect seniors who are considering options related to buying a home utilizing a reverse mortgage.
The current bills moving through Congress decrease the potential benefit to the senior by anywhere from 10% to 18%, and it seems likely that a compromise will result in a reduction somewhere in between.
How to Get your HECM for purchase Reverse Mortgage now
Give me a call ASAP. The new laws are purported to lower the benefit amounts as above by October 1, 2010. There is still plenty of time for a senior 62 years or older to take advantage of the more liberal benefits currently available.