California Reverse Mortgages by your Sacramento Reverse Mortgage Provider

New Rules for Reverse Mortgage

Congress is about to limit the amount of money you can take as an initial draw from a reverse mortgage. The bill that passed on a voice vote is designed to provide reverse mortgage borrowers with less money so the Federal Housing Administration can try to work their way out of their financial difficulty.

The new measure allows the FHA to change the terms of the new reverse mortgages that it insures so they no longer have to follow the normal rule-making process. FHA Commissioner Carol Galante said the bill would “greatly assist” the FHA’s efforts to make the program financially sound while making sure that seniors can continue their home throughout their retirement.

The bill is also designed to make borrowers qualify financially for the reverse mortgage, which I think is defeats the whole purpose of the loan. Since the program has always been intended for seniors that are house rich and cash poor; these new standards will make it less helpful for those that need it most.

If you or someone you know is considering getting a Sacramento reverse mortgage or a California reverse mortgage , don’t wait, it is not getting better. Get a quote at www.reversemortgage4u.com and if you are in California contact me and I will be happy to help.

Jeffrey Bangerter

NMLS 18361