Items Tagged with 'lending limits'

ARTICLES

  • Creating a Family Reverse Mortgage

    In the wake of big banks deciding to exit the reverse mortgage industry and a potential reduction in lending limits, an article in The Wall Street Journal suggests that some families may be better off seeking a way to create their own reverse mortgage.   The article that an alternative to a HECM reverse mortgage, adult children could reduce costs and paperwork of a reverse mortgage mortgage by purchasing their parents home, or setting up a private reverse mortgage to help their parents tap the equity in their home. In either case, children would essentially provide financial support for
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  • Expiration of Higher Lending Limits Under Review

    Unless Congress acts to extend or revise the temporary lending limits for Federal Housing Administration (FHA) loans, the current lending limits will revert back to those determined by the Housing and Economic Recovery Act (HERA), passed in July 2008.   Under HERA, the Federal Housing Finance Administration (FHFA) established the national conforming mortgage limit at $417,000.  HECM lending limits were set at the national conforming limit until the American Recovery and Reinvestment Act (ARRA) increased the HECM limit to $625,500 in 2009, officially established by Mortgagee Letter 2009-50.   The current limits are set to expire on October 1, 2011.
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