The Trump Administration announced significant changes. These changes take effect on October 2, 2017.
Approval amounts will drop by an estimated 20%. The reverse mortgage approval amount for a 65 year-old borrower with a house that is $ 500,000 is $271,000. In October, the approval drops by $56,000 (20.7%) to $215,000.
The fee charged by FHA, which has been criticized as being too high will increase for borrowers under the guidelines.
The previous change impacts the popular expansion rate in the reverse mortgage line of credit, which will drop by 0.75% each year. The FHA insurance premium that’s calculated on future line of credit and loan balances will drop from 1.25% to 0.50%.
The rationale behind those changes of HUD is their desire to fortify the reverse mortgage program’s viability.
As borrower need to lock in approval amounts, we are experiencing a significant increase in applications.
FHA case numbers requested by Wednesday, September 27th will gain from present guidelines. There are particular actions for obtaining your FHA case number that is assigned.
Contact us today and to learn how to receive your FHA case number before September 27th!