FHA name for Reverse mortgage

Home > > Seniors to Find Reverse Mortgages Less Appealing with New FHA Rules

The Federal Housing Administration or the FHA has brought about new rules on reverse mortgage. Most importantly, it has brought about some pertinent changes which holds a lot for seniors. In fact, reports have it that retirement just go harder. This is mostly because of the fact that reverse mortgages now become less attractive. The new regulations are supposed to come into effect from September 30th and along with it comes the fact that taking advantage of the government’s reverse mortgage program will become difficult with every passing day.

A Clear Conception about Reverse Mortgage

Before discussing how difficult it’s about to become for the senior citizens with regards to reverse mortgage, it’s time you took a closer look at the concept of reverse mortgage clearly. Actually the name itself suggests what reverse mortgage is, or in other words, the concept happens to be self-explanatory. With a regular mortgage you end up making monthly payments to the lender concerned; whereas, on the other hand with a reverse mortgage you’d be receiving payments from the lender. In fact, the loan doesn’t really need to be repaid until death or in case of sale of the house or perhaps establishing another primary residence.

Reverse mortgages happen to be available only for people above the age of 62. As a matter of fact, this money can be used as a sort of supplement retirement income which can be used to pay medical bills, for the purpose of home improvements, or perhaps even to pay off your current mortgage. By taking out a reverse mortgage, you’d essentially be converting a part of your home equity to cash.

New Limitations Imposed on Reverse Mortgage

The Federal Housing Administration attempts to mitigate insurance losses post the historic lows of the past 2 years. Following are the changes that come into effect this fall:

  1. Changes in fees: Prior to the new changes, the upfront fee that was required to take out a standard reverse mortgage stood at 2 percent of the the property’s value. As for the upfront fee to take out a saver reverse mortgage, then it stood at 0.01 percent. However, now it’d stand at 0.5 percent across the board.

A.A. for Homebuyers. Zero Down FHA loans tied to

2004-01-26 14:30:51 by Your_pensions-funded-by-

Don't read this if you're invested in the mortgage market: you'll throw up:
Last week, the Bush administration proposed that the FHA allow zero-money-down financing for first-time homebuyers. Zero money down for a house. The new provision would give additional teeth to an already absurd mandate of the FHA: approving applicants who have demonstrated they pose too high a credit risk to get a loan through the conventional mortgage market.
- Lenders, of course, love the idea. "Any down payment," Angelo Mozilo, CEO of Countrywide Financial Corp. told the LA Times, "even 3% [the current requirement of the FHA] is a major, unnecessary obstacle for lower-income borrowers

Questions about FHA loans

2002-07-05 13:04:12 by markster

I've read about these loans at If you have a FHA loan or even considered one please reply.
Is it really true you only have to put down 3%?
Is the following true? Your total move in cost is the FHA premium (2.25% of the mortgage), closing cost (3% of the home value) and down payment (3% of home value).
Also, I've heard that instead of PMI you pay a monthly FHA premium, if so, how much is it?
I've heard that FHA rates are considerbly lower than conventional rates. How much lower are they?
Thanks in advance for your time.
Markster

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Just Approved: Recent FHA buyers refinance to remove mortgage insurance  — San Francisco Chronicle
Mortgage consultant: Ty Cabalsi. Loan type: 30-year and 15-year fixed-rate refinance mortgages.

FHA lowering loan limits in Chicago area  — Chicago Tribune
Combined, the moves taken by the FHA this year will force some homebuyers in 2014, particularly first-time homebuyers, to expand their search for mortgage financing or put their planned home purchases on hold.

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  • Avatar Gene How much I will approve for FHA Home Loan?
    Sep 15, 2010 by Gene | Posted in Personal Finance

    I ve a good credit score 700 and I m planning to get FHA home loan and my monthy income before tax is $2600. How much I will qualify for FHA loan? Any tips will helpful to move forward thanks all.

    • Depending on the state you will have to buy a home that meets the requirements for an FHA loan. You can discuss this with your Realtor. You will have to submit, on several occasions, proof of employment, tax records and some additional information.