Posted on: 28th Aug, 2010 02:50 am
Hello Everyone,
The Federal Housing Administration (FHA) announced that it plans to make modifications to its Home Equity Conversion Mortgage (HECM) product in order to make it attractive and cost effective to the senior citizens. HECM is a FHA insured reverse mortgage loan.
FHA is planning to implement a new variant of HECM which will be known as "HECM Saver". It will provide seniors with a reverse mortgage option with low upfront costs. The upfront costs will be lowered by eliminating the upfront Mortgage Insurance Premium that is required under the standard HECM option.
The Federal Housing Administration (FHA) announced that it plans to make modifications to its Home Equity Conversion Mortgage (HECM) product in order to make it attractive and cost effective to the senior citizens. HECM is a FHA insured reverse mortgage loan.
FHA is planning to implement a new variant of HECM which will be known as "HECM Saver". It will provide seniors with a reverse mortgage option with low upfront costs. The upfront costs will be lowered by eliminating the upfront Mortgage Insurance Premium that is required under the standard HECM option.
Hey Niicss,
Thanks for sharing the news :-)
The major difference between HECM and the HECM Saver is the low upfront Mortgage Insurance Premium (MIP). The FHA charges the upfront MIP to support its insurance fund. Under the HECM Saver option, the borrowers will have an upfront MIP of only .01% of the property's value. However, the amount of money available to the borrowers under the HECM Saver option will be quite less compared to the HECM standard option.
Thanks,
Jerry
Thanks for sharing the news :-)
The major difference between HECM and the HECM Saver is the low upfront Mortgage Insurance Premium (MIP). The FHA charges the upfront MIP to support its insurance fund. Under the HECM Saver option, the borrowers will have an upfront MIP of only .01% of the property's value. However, the amount of money available to the borrowers under the HECM Saver option will be quite less compared to the HECM standard option.
Thanks,
Jerry
Hi Nicss,
Thanks for sharing this information with us.I must admit that this will surely help those elderly citizens who are having small cash in their kitty.
DIPA
Thanks for sharing this information with us.I must admit that this will surely help those elderly citizens who are having small cash in their kitty.
DIPA