A Lot Different Than Years Ago
Safer: Both FHA and the Lending Industry have made Reverse Mortgages safer for the Borrowers.
With limits on the max cash out the first year, FHA removed the ability for crooked lenders to scam people out of their Equity.
Cheaper: Gone are the days when the costs for a reverse mortgage were so large that they did not make much sense to do a reverse mortgage. Today we have reverse mortgages where the fees are paid for by the lender and not the borrower.
Larger: Max Loan Amounts for Reverse Mortgages have been limited by the maximum county limits that are set by the FHA. Now we are able to originate Reverse Mortgages up to $4,00,000.
Condos: Easier Condo approvals then traditional FHA standards. Now if the value of your condo is over $500,000 it no longer needs to be an approved FHA condo.
Cash Flow: Reverse Mortgages have no monthly payments. Borrowers are still obligated to pay their property taxes and property insurance.
With no monthly payments this eliminates the need to drain your savings or ask relatives for help each month.