New FHA Reverse Mortgage Program For Seniors

eric1

[System detected duplicate content; converted into image. Thanks]

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.77 Dollars($)

Eric1,

Thank you for sharing

But I am not sure it is good for seniors, since most of them have lost thier retirement money in the stock market bust, now FHA is askign offering them a way to loose thier house

Thats just my opinion

savior70 · Posted: Wed Jul 15, 2009 3:44 am Post subject:

Hi,

It's a good news for the seniors. It's true many of the seniors have lost their hard-earned money in the stock market. But the program will no doubt help them save some money if they are planning to purchase a smaller home and take a reverse mortgage on it. They will not be required to pay the closing costs twice. This will surely help them financially. They are also not required to sell their existing homes. So, they have the opportunity to earn some extra money by renting the current homes.

But Eric, I have a few queries. Does one qualify for the HECM program if there's an existing mortgage on the current home? Does he need to pay off the mortgage with the reverse mortgage proceeds at the closing? Or can he continue making the mortgage payments with the monthly income from the reverse mortgage?

raymond · Posted: Sat Oct 10, 2009 9:49 am Post subject:

>>They will not be required to pay the closing costs twice.

That statement is inaccurate. The homeowner will have to pay all closing costs again. The only benefit will be proration of FHA's mortgage insurance. That fee will be gravely reduced.

>>Does one qualify for the HECM program if there's an existing mortgage on the current home?

Yes

>>Does he need to pay off the mortgage with the reverse mortgage proceeds at the closing?

Yes

All times are GMT - 7 Hours

Page 1 of 1