New Mexico Reverse Mortgages

FHA Loan Limits, HUD Lenders

New Mexico homeowners are quite varied and include poor, average and wealthy. All reverse mortgages are not suited to all borrowers. But what is most advantageous about a reverse mortgage is the fact that a senior, age 62 and older is not required to provide an income, a good credit record or make any payments until the home is sold or the owner dies. This means everyone regardless of financial status is able to tap the cash equity in his or her home.

If you are a homeowner age 62 and a resident of New Mexico use this as a brief guide to choosing the right lender for your reverse home mortgage.

FHA Lender Limits

FHA mortgage limits matter significantly to the federally insured HUD Home Equity Conversion Mortgage (HECM), particularly when you consider that over 90% of all borrowers use the HECM.

In New Mexico FHA limits are set on a county-by-county basis and are indicative of local home values. Throughout much of the state FHA limits are close to the national average. Two counties stand out with significantly higher limits: Santa Fe and Los Alamos.

For the average homeowner most FHA limits allow plenty of room to finance the HUD HECM. But for homeowners with high value homes lower FHA limits could be a bit too restrictive.

NM HUD Lenders

Since the HUD HECM is so popular, where do you find an experienced lender? Before you dial the number off that direct mail post card or an arbitrary business from a phone book consult the HUD-approved lender list for New Mexico.

If a Home Equity Conversion Mortgage is a possible option for you, here’s what you need to know about finding a legitimate lender:

  • HUD, U.S. Department of Housing and Urban Development, is not the entity that lends money for the reverse mortgage.
  • A HUD lender list can be found on their website or from a reputable and independent mortgage counselor.
  • Never pay money in exchange for a reverse mortgage lender list.

Single Purpose Reverse Home Mortgage in New Mexico

Twenty-five states currently provide a type of single purpose reverse mortgage for low-income senior homeowners. State specific property tax deferrals are designed similarly to this type of reverse. In New Mexico low-income seniors over the age of 65 are eligible for a property tax rebate as opposed to a deferral.

A couple of home rehabilitation programs exist for low-income, rural and/or disabled seniors. Requirements, costs and term vary according to program:

  • Tierra del Sol Housing Corporation is designed to provide rehab funds to very poor and rurally isolated in southern New Mexico.
  • The New Mexico Mortgage Finance Authority administers the HOME Owner Occupied Rehabilitation Program.

General Reverse Mortgage Providers Available

Reverse mortgages are available from a number of different types of lenders. Here is a sample of those types.

  • Anchor Mortgage is a regionally located company that specializes in all types of mortgages for New Mexico homebuyers. This is a HUD-approved lender for the federal Home Equity Conversion Mortgage.
  • Financial Freedom is a good example of a nationwide mortgage company that is perhaps the largest volume dealer across the board. Borrowers may choose from the HUD HECM, the Fannie Mae Home Keeper and FF’s own proprietary reverse jumbo mortgage, the Cash Account Advantage.
  • Gold Reverse is reverse mortgage broker that specializes in a unique “high-end jumbo reverse mortgage.” This type of reverse mortgage is most suited to homeowners with very high-value homes, where the FHA county limits are just too restrictive.