Texas Home Lending News

Reverse mortgages in Texas are about to change. This change will go into effect across the entire country. Sublime Financial handles many reverse mortgages in Dallas and all over the state. We are now trying to inform clients who have been thinking about getting a reverse mortgage to act now.

 The Department of Housing and Urban Development Tuesday announced it will increase premiums and tighten lending limits on reverse mortgages. This is because they have concerns about the actual strength of the program and some taxpayer losses.

Mortgage Premiums In Texas 

Anyone in Dallas or Texas looking for a Home Equity Conversion Mortgage (HECM) otherwise known as a reverse mortgage, will see insurance premiums rise from 0.5% to 2.0% of the maximum claim amount at the time of the origination.


Reverse Mortgage Limits In Texas

According to the Wall Street Journal, the average amount of cash seniors can access will decline from about 64% of the home’s value to 58% based on the current rates. This goes into effect on loans October 2, 2017.

According to Ben Carson, the losses they have been seeing in the program, have spurred the need to make the changes to balance the mission of the program along with the responsibility to protect taxpayers. They do not want future reverse mortgages to adversely impact the overall health of the FHA’s insurance fund, which supports the financing needs of the younger, first-time homeowners with traditional FHA mortgages. Without this change the Federal Housing Administration would need an appropriation from Congress in the upcoming years to keep reverse mortgages going.

 
Reverse Mortgage Customers In Texas

What does this mean for our clients here in Texas who are looking at reverse mortgages? Do it now in September 2017 in order to get more value for your home and to avoid the higher insurance premiums.

Sublime Financial handles home loan needs in Dallas and all of Texas. Please contact us immediately so that we can help you beat this deadline.