As I have mentioned the purpose of this blog is to discuss all types of current events and anything that really effects our daily lives. I really even try not to rely on Real Estate issues like most of my previous posts have shown. I did learn of a program this week that is really fantastic and I though I would tell you about it
The Housing and Economic Recovery Act of 2008 (HERA) provides consumers with an opportunity to purchase a new principal residence using a down payment and financing the balance with a reverse mortgage.
Reverse Mortgage have been around for a while, the big difference here is that the reverse mortgage is not being used to refinance a house it is being used to down size and buy a smaller house.
Here is a very brief outline of the program
1. Lending limit is $625,000 and you must be 62 years if single, married both must be over 62
2. There are no income requirements or any qualifying. Must be owner occupied and principal residence
3. House must be FHA approved or a Condo HUD approved
4. After the down payment there is not another payments until there is a qualifying event
a. House is sold
b. The house passes to the heirs
5. This is one of the key aspects and very important. If there is a negative equity on the property the shortfall is
covered by FHA. If there is a positive equity it is kept by the owners or the estate!
6. Current Fixed rates including MIP (Mortgage Insurance) is 6.06% Fixed and 4.06% Adjustable
7. Down Payment Goes from 40% at 65 to 25% at 80
Let me know what you think? I believe it is a win win situation.
If you know of someone or you would like some information send me an email
