Find an Experienced Financial Provider Before You Sign
Senior homeowners in Virginia: if you are exploring your options for a reverse mortgage learn where to find experienced lenders. Also important, understanding what types of products exist to help you reach your financial goals for now and in the future.
FHA Lender Limits and How They Affect Virginia Reverse Mortgage Loans
FHA limits are directly dovetailed into the national housing industry and help make homeownership a possibility for average Americans. But your county FHA limit is a key factor used by a lender to determine your home’s eligibility for a federally insured Home Equity Conversion Mortgage, or the HECM. Local limits are based on average home values, types of residences and other variables.
The large majority of homeowners fit into the parameters allowed by the FHA limits. Your home may have equity and value far above the local FHA limit, but if you are applying for a HECM that is the limit to which the loan will be approved. For high value homeowners the HECM is often just too limiting.
Virginia has 135 counties and the FHA limits are quite variable. Limits lie between the national average and up to $450,000 above. High value areas such as the metro Arlington-Alexandria area, Richmond, Charlottesville and Winchester all feature remarkably higher limits.
Since the large majority of reverse mortgages are the HECM it stands to reason that there is a high demand for knowledgeable HECM providers.
Tips for finding a HUD Lender:
- First HUD and the FHA are not reverse mortgage lenders.
- Search for approved HECM lenders via a list located on the HUD website or request one from a mortgage counselor.
- Never pay money in return for a HUD lender list; this freely available information.
Single Purpose Reverse Mortgages Available to Low-Income Virginia Seniors
Various counties and municipalities in Virginia offer a type of single purpose reverse mortgage in the form of a property tax deferral. By definition a single purpose reverse home mortgage is administered by a government agency to seniors and lets them access the equity in their homes for a solitary reason: to pay off high bills, property taxes or make critical home repairs.
In Virginia counties property tax deferrals are typically granted on the following bases:
- Seniors age 65 and over.
- Minimal income, determined locally.
- Must own the house for which they are requesting a deferral.
The deferral is a lien on the value of the home with a low annual interest and does not come due until the property is sold or the owner dies. Contact your county tax assessor’s office for details and applications.
Types of Reverse Home Mortgage Providers
A wide variety of financial companies may offer reverse mortgages: retail banks, credit unions, mortgage brokers, investment and insurance companies and ultra-specialized reverse mortgage brokers.
Here are a few of the types of companies you’ll find in Virginia.
- 1 st AAA Reverse Mortgage, also Reverse Mortgage USA, provides seniors with the HUD HECM as well as other reverse mortgage options. Reverse Mortgage USA has branches throughout the state.
- Old Virginia Mortgage company is FHA approved to offer seniors the HECM. OVM also offers alternatives and manages all reverse mortgages through a proprietary reverse mortgage department.
- Wells Fargo is known nationwide for its retail banking services for both personal and business customers. But its Home Mortgage division offers equally sound solutions. Senior homeowners may choose from two reverse mortgage products: the HUD HECM and the Fannie Mae Home Keeper.