Archive for the 'Reverse Mortgage' Category
Foreclosure Relief For Seniors
January 11th, 2011
Written by Greg Frost
If you are over 62 and are facing foreclosure on your home, Frost Mortgage may have a way for you to save your home and eliminate your mortgage payments for the rest of your life.
The Frost Mortgage Senior Saver loan program uses the FHA Reverse Mortgage, which does not require a credit score. If you and your co borrower are over 62 and you have at least 50% equity in your home, Frost Mortgage can help you save your home and eliminate mortgage payments for the rest of your lives, right up until the day before your current lender completes the foreclosure process.
“The government finally got something right when they designed this mortgage program. It truly solves one of the ugly crises of our times….our senior population losing their homes in the wake of the economic crises” says Greg Frost, Sr., President of Frost Mortgage Banking Group. “Seniors who stayed the course, didn’t speculate with their equity, and didn’t use their home as an ATM are being rewarded by this excellent government insured mortgage.”
(Greg Frost wrote an article on the advantages of reverse mortgages for New Mexico Business Weekly in 2007; you can click here to read it.)
If you or someone you know could be helped by the reverse mortgage program, please contact us today. We’ll be back in touch with you quickly.
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What Is an FHA Reverse Mortgage?
December 30th, 2010
Written by Frost Mortgage
Federal Housing Administration (FHA) reverse mortgages allow homeowners to access cash from the equity they’ve built up in their property over the years. Those over the age of 62 with either a fully paid-off mortgage or very few payments left on the loan may qualify for an FHA Reverse loan. In essence, this program works like a traditional reverse mortgage, but exists through the U.S. Department of Housing and Urban Development (HUD) and is insured by the FHA.
How an FHA Reverse Mortgage Works
Receiving Payments: Once you qualify for an FHA reverse loan, you can tap into your equity and receive payments in a variety of ways: You can choose a lump sum payment, use the equity as a separate line of credit or receive monthly installments, as long as you still live in the home. Plus, it’s always possible to change the payment structure mid-way.
Paying Off the Loan: An FHA reverse mortgage gets paid off as follows: The homeowner secures a loan and the lender recovers their principal, plus interest, when the home is sold. Anything leftover after the sale of the home goes to the homeowner or survivors. Doing this through HUD will ensure that if the sales proceeds are not enough to pay off the debt, HUD will pay the lender the difference.
Older people requesting a FHA reverse loan can borrow a larger percentage of their home’s value. The ultimate size of the loan is determined not only by the age of the applicant, but the current interest rate and the value of the home. Of course, before committing to any loan, thoroughly research all of your options to be sure it’s right for you.
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New Mortgage Rules Help Seniors
October 21st, 2010
Written by Frost Mortgage
New reverse-mortgage rules from the Federal Housing Administration (FHA) may help senior homeowners in need of retirement cash. Congress recently passed legislation extending the limit on these federally-insured mortgages to $625,500. Under the new rules, the mortgages aren’t limited by credit score or income requirements and only require homeowners to maintain the existing property.
In addition, changes have also been made to the FHA’s Home Equity Conversion Mortgage, allowing owners to borrow smaller amounts against their property than would have been available under the previous legislation.
Read more: http://www.creditfyi.com/News/new-mortgage-rules-help-seniors-123.htm#ixzz131jirwYo
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New HUD Protocol Offers Older Adults More Information and Deeper Financial Assessment, Using Tools and Materials Developed by NCOA
August 5th, 2010
Written by Frost Mortgage
WASHINGTON, Aug. 4 /PRNewswire-USNewswire/ — The U.S. Department of Housing and Urban Development (HUD) now requires all HUD-approved reverse mortgage counselors to provide their clients with the National Council on Aging’s (NCOA) 28-page consumer booklet on reverse mortgages. In addition, counselors must complete an extra level of financial assessment to help prospective borrowers gain a greater understanding of financial risk and other factors that may impact their loan.
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Reverse Mortgage program: Be aware of possible changes
May 25th, 2010
Written by Frost Mortgage
The future of the FHA Reverse Mortgage program is in jeopardy. Frost Mortgage helps seniors find home loans through this great program, but we’re disappointed to see that, without $250 million from Congress, the principal amount of a new loan for seniors (subscription required) could be reduced by 30 percent, according to National Mortgage News.
Even though HUD officials say the appropriation for the Home Equity Conversion Mortgage (HECM) may not receive its appropriation in the coming fiscal year, we hope you won’t be discouraged from looking into the program. For the moment, we’re able to provide loans as usual, and even should the appropriation fall through, we know many of the fine points that can make the difference in tapping into your home’s equity.
So please, contact one of our loan officers today and let us help you leverage your home in a way that will give you long-term peace of mind through a top-quality reverse mortgage.
Discussion: 1 Comment »
FHA: Reverse mortgage support is crucial
May 4th, 2010
Written by Frost Mortgage
Reverse mortgage programs operated by Housing and Urban Development (HUD) require help to continue, the Federal Housing Authority (FHA) told a House subcommittee recently, Reverse Mortgage Daily reports.
In testimony, an FHA assistant secretary said that, without support, HUD will be forced to more drastically cut principal limit factors (PLFs), which “would significantly reduce the amount of funds that would be available to seniors (more than 30%), which is on average a $23,000 to $27,000 impact.”
We know what a reverse mortgage can mean to older members of our community. As a full eagle licensed FHA lender, Frost Mortgage is a great choice for your reverse mortgage questions. Please, contact us today and find out why we don’t just close mortgages–we open doors.
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Reverse mortgages: What are they?
April 13th, 2010
Written by Frost Mortgage
Many people don’t realize that Frost Mortgage’s expertise also extends to “reverse mortgages.” In fact, it’s one of our specialties, and we have a full-time staff member dedicated to this unique program.
So, what is a reverse mortgage? As the department of Housing and Urban Development (HUD) explains:
A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence.
As a full eagle licensed FHA lender, Frost Mortgage is a great choice for your reverse mortgage questions. Please, contact us today and find out why we don’t just close mortgages–we open doors.
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