Oregon Mortgage News: March 2009

I found this information and thought it would be extremely helpful to share with anyone considering a reverse mortgage, or anyone helping an aging loved one with this decision. At the end of this post I have a link to a FREE video that explains the basics of Reverse Mortgages. Check it out!

AARP answers your questions:

The Home Equity Conversion Mortgage (HECM) is the only reverse mortgage insured by the federal government. HECM loans are insured by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD).
 
The FHA tells HECM lenders how much they can lend you, based on your age and your home's value. The HECM program limits your loan costs, and the FHA guarantees that lenders will meet their obligations.

HECMs Versus Other Reverses

HECM loans generally provide the largest loan advances of any reverse mortgage. HECMs also give you the most choices in how the loan is paid to you, and you can use the money for any purpose.
Although they can be costly, HECMs are generally less expensive than privately-insured reverse mortgages. Other reverse mortgages may have smaller fees, but they generally have higher interest rates. On the whole, HECMs are likely to cost less in most cases. A notable exception may be the reverse mortgages now being developed by some credit unions.

The only reverse mortgages that always cost the least are ones offered by state or local governments. These loans typically must be used for one specific purpose only, for example, to repair your home, or pay your property taxes. They also generally are available only to homeowners with low to moderate incomes.

Who is Eligible

HECM loans are available in all 50 states, the District of Columbia, and Puerto Rico. To be eligible for a HECM loan:

• you, and any other current owners of your home, must be aged 62 or over, and live in your home as a principal residence;
• your home must be a single-family residence in a 1- to 4-unit dwelling, a condominium, or part of a planned unit development (PUD). Some manufactured homes are eligible, but most mobile homes are not; cooperatives are expected to become eligible by the end of 2008.
• your home must meet HUD's minimum property standards, but you can use the HECM to pay for repairs that may be required; and
• you must discuss the program with a counselor from a HUD-approved counseling agency.

Repaying a HECM

As with most reverse mortgages, you must repay a HECM loan in full when the last surviving borrower dies or sells the home. It also may become due if:
• you allow the property to deteriorate, except for reasonable wear and tear, and you fail to correct the problem; or
• all borrowers permanently move to a new principal residence; or
• the last surviving borrower fails to live in the home for 12 months in a row because of physical or mental illness; or
• you fail to pay property taxes or hazard insurance, or violate any other borrower obligation.

Debt Limit

If your rising HECM loan balance ever grows to equal the value of your home, then your total debt is limited by the value of your home if the home is sold to repay the loan. But if the home is not sold and the loan is repaid with other funds, then you or your estate would owe the full loan balance–even if it is greater than your home’s value. Your heirs would not have any personal liability for repaying the loan.

Click HERE to gain access to the FREE Video on Reverse Mortgages- be sure to watch!

Larry Morris CMPS
American Nationwide Mortgage Company, Inc.
307 E 2nd St. #230
Newberg, OR 97132
OR License ML-3259
WA License WA-510-LO-51175

Toll Free - 1-888-660-2842
Cell - 503-421-0096
Fax - 1-888-649-6625

www.PDX-Mortgage.com
www.OregonReverseMortgageNews.com

Seth Godin, in a recent interview, gave his opinion on the validity of the size of your social media network. In his opinion, it's pretty meaningless if all you do is get friends/followers/associates/links or whatever.

A friend of mine, Ed Bisquera, who seems to be doing the Social Media thing right, posted the above link. While I don't respond to all links, this one caught my eye.

• It was from Ed, (a friend)
• It was about Seth Godin (an expert) and
• The Title was controversial. (There's a marketing lesson for you right there.)

In the video, Seth likens Social Media to a giant cocktail party. There's a lot of people who are in the same place, who have a few things in common, but only a few would really go to bat for you. In his opinion, and I would have to agree, it's not about how many friends you have on FaceBook or twitter, or associates on LinkedIn or ActiveRain, but about the relationships that you have with those people.

So how do you make it work?

Click to read the rest of the post

I just received an email from the USDA Rural Development that funds have been released again this year for the USDA Guaranteed Rural Home Loan Program. This means that we are again able to provide funding for financing up to 100% of the purchase price for Oregon and Washington loans in qualified areas.

Small towns such as Sherwood, Newberg, Sheridan, Dallas, Canby and Forest Grove qualify in my neck of the woods.

The USDA Guaranteed Rural Home Loan program is unique in that it is one of the few loans left that will allow a qualified home buyer, in a qualified area, to purchase a home with $0 down. Of course, the purchase does have to be structured correctly, but it is fairly easy to set up.

Rates today are incredibly low due to recent action by Congress and the Fed. This is a GREAT loan for a 1st time home buyer and a GREAT time to take advantage of low rates and reduced home prices.

Call me today, or visit my website to learn more.!!

Larry Morris

503-421-0096