I recently found an article describing how 918,400 older borrowers were either behind on their mortgage payments or at risk of falling behind in July, 2021. The obvious question to me is, “If CFPB can identify these borrowers, why aren’t they being screened for and offered FHA Reverse Mortgages?”. (Read the article for yourself HERE).
I understand that not all will qualify, but since the U.S. mortgage industry as a whole only closed 4,203 FHA Reverse Mortgages in July, 2021, it is apparent that there is a huge gap between the need of older homeowners and the help they are being offered.
My book, “Why A Reverse Mortgage?”, explains how some borrowers have been helped and the huge financial difference this option has made for them. At the same time, FHA condo approval requirements and other FHA appraisal, property, and qualification requirements seriously restrict access to this solution for borrowers at all income levels. As I describe in the book, an individual’s cash flow is often much better when they choose to stay in their home with an FHA Reverse Mortgage than if they choose to sell and apply to live in subsidized housing. An added benefit is less strain to taxpayers because subsidized housing is funded through taxes while the FHA Reverse Mortgage program is self-funded, requiring no tax money from Congress.
Comments or Questions? Email Don HERE