The The Expanding American Homeownership Act FHA Reform bill passed was Friday by the full US Senate.
The bill passed 93-1 and cuts in half the required down payment for FHA first time homeowner programs.
This bill Expands the FHA Home Equity Conversion Mortgage (HECM) Program maximum loan limit to a national level of $417,000 the current Fannie Mae loan limit, and lowers origination fees from 2% to 1.5%
While the bill has some process to go through before it becomes law, it may become law shortly before or after the new year.
The FHA Bill could be passed within the next eight weeks.
A reverse mortgage pays off current liens on a seniors home, and other equity that is left over is available to the senior in the form of a credit line.
The equity that is available in a credit line grows each year. The growth for the FHA reverse mortgages is half a percent higher than the current rate for the loan. So if the rate of the loan is 4.75%, the growth-rate of the credit line is 5.25%.
Because of this, a higher rate loan might be more appealing to a senior with a large initial credit-line. The difference in growth over the life of the loan is something to seriously consider.
Credit lines can be used for anything, and the money is tax free.
Back in March 2007, Bank of New York Co. had relinquished its 49 percent stake in reverse mortgage lender BNY Mortgage Co. to majority partner EverBank Financial Corp. As Everbank is a privately held company, this transaction took place for an undisclosed price.
In Early November 2007, Bank of New York officially started doing business as Everbank. EverBank is based in Jacksonville, Florida
Occasionally a real estate appraiser will notice that some repairs or further inspections are necessary, such as a foundation, electrical, or roof inspection. When further inspection requires repairs, the loan will fund, and one and a half times the amount of the repair estimate(s) will be withheld until those repairs are made.
After the repairs are made, and certified as complete by the repair inspector, the bank will issue a check directly to the repair company.