Daily News and Information for the Mortgage Loan Originator
LibertyStreet Financial Group Launches New Government-Backed Reverse Mortgage Program
Monday, November 17, 2008
- LibertyStreet Financial Group
SAN DIEGO, CA - With many baby boomers coming of age, retirement incomes for seniors have remained relatively flat while the cost of living has skyrocketed. On November 6th, 2008, a new law took effect, increasing the federally insured Reverse Mortgage lending limit from $362,790 to $417,000 for homeowners age 62 and up. This means, a 75 year old with a home valued at $417K or higher, would qualify for a credit line of $280K. For many retirees, the need to tap into available home equity to help subsidize income is paramount, yet most don’t understand what a Reverse Mortgage is or how it can help them. The nation’s foremost authority on Reverse Mortgages and the industry’s leading consumer advocate, Tony Garcia, CEO of LibertyStreet Financial Group, has established new Trust & Transparency HUD/FHA Reverse Mortgage Programs that are completely transparent and straightforward solutions for those seniors cash strapped during these tough economic times. LibertyStreet’s new programs provide retirees with an additional income stream to help alleviate the pressures of living expenses while guaranteeing they will not lose their home.
The basics of LibertyStreet’s HUD/FHA Reverse Mortgage are simple: it’s a loan with deferred interest (currently at 3%) and no principal payments. The amount of money borrowers qualify for is based on their age, home value and the FHA expected interest rate. Rather than making any payments, the interest accrues onto the loan balance. The mortgage takes the form of a first lien against the home and acts just like a regular mortgage, except you never make a payment. The first portion of the available loan amount is used to pay off the current mortgage, if one exists. The remaining available loan amount comes to the borrower in the form of lump sum upfront money, tenure equal monthly payments for life (as long as one of the borrowers is living in the home), or an open-ended line of credit. The money received is tax-free. When the borrower, or the later of two borrowers, passes, the heirs may either refinance the loan and keep the home or sell the residence and retain the difference between the sale price and the loan balance.
Through Reverse Mortgage loan programs, LibertyStreet seeks to dispel many of the misconceptions associated with the product, explaining up front that:
Seniors will not lose their homes. They retain ownership until they sell or pass on to their heirs.
Reverse mortgages are not expensive, when done through a firm that is trustful, truthful and transparent.
You can use the money for whatever you wish.
Reverse mortgages are a sound financial investment. The reverse mortgage market is not a credit-driven market, it is a life expectancy market.
Under the new Federal regulations, reverse mortgages can be used to purchase another property including vacation homes, homes for family members or investment properties.
