Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

Mortgage

HereÕ what you need to qualify for a reverse mortgage

What to expect when applying for a home equity conversion mortgage

Home equity conversion mortgages, more commonly known as reverse mortgages, are another avenue for homeowners to add to their financial assets and retirement plans. Reverse mortgages give older homeowners another source of income, giving them a financial boost to remain in their home and age in place, or the funds to keep up with their pre-retirement lifestyle.

But how do you qualify for one of these loans? For a start, you must be 62 years of age or older.

It’s important to remember that while borrowers aren’t required to make monthly payments on a reverse mortgage, they are still responsible for making payments on property taxes, mortgage insurance and homeowners association fees. Borrowers do not have to make payments on the loan as long as they live in the home. If the borrower moves, sells the home, or dies, then the borrower or their estate is responsible for repaying the loan.

The U.S. Department of Housing and Urban Development outlines the basics of the HECM on its website. In addition to meeting the following requirements, all potential borrowers must take part in a HUD-certified counseling session.

Here are HUD’s requirements for reverse mortgages:

Borrower Requirements

You must:

  • Be 62 years of age or older
  • Own the property outright or have paid down a considerable amount
  • Occupy the property as your principal residence
  • Not be delinquent on any federal debt
  • Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and homeowners’ association fees, etc.
  • Participate in a consumer information session given by a HUD-approved HECM counselor

Property Requirements

The following eligible property types must meet all FHA property standards and flood requirements:

  • Single-family home or a 2-4 unit home with one unit occupied by the borrower
  • HUD-approved condominium project
  • Manufactured home that meets FHA requirements

Financial Requirements

  • Income, assets, monthly living expenses, and credit history will be verified.
  • Timely payment of real estate taxes, hazard and flood insurance premiums will be verified

Lori Trawinski, a director with AARP’s Public Policy Institute, said the counseling sessions are only an hour long and that those interested in reverse mortgages should do plenty of research and become familiar with them before the session.

“It’s a lot to take in,” she said. “The more people can read ahead and sketch out their questions, the more prepared they will be for the counseling sessions.”

Trawinski said the AARP Public Policy Institute encourages people seek out sources of unbiased information when getting these loans, from someone such as an elder law attorney or a trusted adviser.

“We also encourage including family members to take part. It’s a serious decision when you take out a loan and the most important thing is to be fully educated as to what you’re about to do and to what the terms of the loan are,” she added.

 

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