Reverse Mortgages are the new financial planning tools for Seniors

Changes to federal reverse mortgage regulations have shifted this senior safety net away from its traditional role as a loan of last resort to keep the elderly in their homes. Previously, full repayment of reverse mortgages fell due upon the death of the borrower, sometimes forcing a surviving spouse to sell the home or face foreclosure. Now, HUD allows non-borrowing spouses of reverse mortgage borrowers who pass away or enter assisted living to remain in their home, provided they use it as their permanent residence and continue to pay taxes, insurance and association fees. In a second but related change, HUD allows qualified borrowers to obtain an HECM even if their non-borrowing spouse is younger than age 62, with the caveat that the loan’s principal amount will be based on the age of the younger spouse. The last major boomer-friendly reverse mortgage tweak enables qualified seniors to downsize or relocate by using a reverse mortgage to purchase their new home, thereby saving on closing costs.
Call Regina Singh at 714-883-5205 for more information.

Read more: http://www.bankrate.com/finance/mortgages/reverse-mortgages-a-financial-planning-tool-1.aspx#ixzz3RyeBnTOq

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