The Federal Housing Administration has been busy this year improving and securing the Federal reverse mortgage program; the October changes have made it a more sustainable program for future seniors. Purchasing a home with a reverse mortgage had been a little difficult, but purchasing a new home with a reverse mortgage had been virtually impossible because it always required a certificate of completion before an application or counseling could be done. This required purchasers to secure the home with a traditional mortgage and then turn and pay additional fees to get a reverse mortgage on the home later. The recent change has removed the requirement for a certificate of completion first, and now only requires the certificate on the new home to be finished “at any time prior to submission for endorsement.”
This is great news for retirees looking to purchase their retirement home in a new community. With many 55 + communities springing up in Southern California this is a welcome change for seniors looking to move in. They can now purchase their new home with one loan, one set of finance fees and a lifetime of security knowing they will never have to make another mortgage payment for their entire retirement. The October changes have now created a simple and easy to understand product that allows retirees to choose whichever house they want for their retirement whether it be in a brand new community or an established one.