HURRY! HURRY! HURRY! – Your chance to obtain a reverse mortgage under the old underwriting guidelines will expire March 2, 2015. Reverse mortgages allow people who own their home and need an income to be able to remain in their home and their current income is insufficient (generally the elderly on a fixed income) to take the equity out without having to repay it during their lifetime so long as they continue to reside in the home. The amount you draw down will get paid at the time the house is sold whether due to your death or due to a sale of the property.
The federal government has adjusted the guidelines for qualifying for a reverse mortgage which go into effect on March 2nd after which, among other requirements, you will have to show your income and proof of ability to pay for your taxes and insurance otherwise the government will require that an estimate of your taxes and insurance for the entire term of the loan will have to be set aside – this will greatly reduce what will be available to you for your use from the proceeds of the loan. However, if you complete an application and obtain an FHA file number BEFORE March 2, 2015 you simply must show you own your home and you have equity in it.
If you would like more information regarding reverse mortgages, please contact Lisa Buzaid in our Danbury office or one of our other Real Estate attorneys and we can help you complete the process and if need be to aid you in getting your application in before the deadline for change.