Now that the New Year is underway, many
of you made resolutions for your health and finances. I hope you are all doing well with your
resolutions. I can't offer much help
with your health resolutions, but I do have some important information for your
finances if you are a senior.
Effective January 1, 2006, FHA released the increased lending limits for San Diego, Riverside, Orange and Los
counties. In San Diego, the lending limit increased from $312,895 to
$362,790. That is one of the largest
increases in recent years. Since the
most popular reverse mortgage is the FHA Home Equity Conversion Mortgage
(HECM), this increases the amount that a senior can borrow.
If you are considering a reverse
mortgage or already have a reverse mortgage that is two to three years old, now
would be the time to act. With the
increases in appreciation we've seen in Southern California, why not capitalize on that growth and use it to improve
your quality of life?
Did you know that since the
federally-insured Reverse Mortgage program began in 1989, the number of seniors
participating in the program has grown at a compound annual growth rate of 42%?
This growth is attributed to the fact
that many more seniors are learning about the benefits of the reverse mortgage,
there has been more media coverage about the program, more seniors are
discussing the benefits with their friends and relatives and adult children are
realizing that the reverse mortgage will help their parents maintain their
The best way to see if a reverse
mortgage is right for you, is to call me for a free, no obligation quote. AND, if you have already made the decision
that a reverse mortgage is right for you, you owe it to yourself to call me
BEFORE you sign with anyone!
One other area: I
have received many calls from seniors who live in manufactured homes. While a reverse mortgage may be obtained on a
manufactured home, there are quite a few more requirements on the property than
on a "stick built" home.
The FHA Reverse Mortgage program (HECM) is the only program
that accepts manufactured homes. The
Fannie Mae program does not accept manufactured homes. FHA has the following requirements:
1) The home must
be constructed after June 15, 1976.
2) The home must
not have been installed or occupied previously at another location.
3) The home must
be classified and subject to taxation as real estate.
4) The home must
be built and remain on a permanent chassis.
5) The home must
be on a permanent foundation built to FHA guidelines. A foundation inspection must be performed by
a licensed engineer prior to the appraisal.
6) The home must
have an affixed HUD seal, the appraiser must show the
serial number on the appraisal.
7) The axles and
tongue must be removed.
utilities must be installed.
skirting must be installed around the perimeter.
10) The finished
grade elevation beneath the home must be at or above the 100 year return
frequency flood elevation.
11) The home cannot
be located in a "condominium" home owner's association.
Your Local Reverse