On March 2, 2015, the FHA implemented new guidelines that require reverse mortgage<\/strong> applicants to undergo a financial assessment. Although HECM borrowers are not required to make monthly mortgage payments, FHA wants to make sure they have the financial ability and willingness to keep up with property taxes and homeowner\u2019s insurance (and any other applicable property charges).<\/p>\n It has become apparent that the actual reason for Financial Assessment (FA) is because the FHA HECM has an \u201centitlement loan\u201d similar to Social Security. A lender could not refuse a request for a HECM<\/strong> before 2015 because the requirement is age 62, own a home and meet initial debt-to-equity requirements before. With FA, the lender may now force equity \u201cset aside\u201d rules and sums that make the loan impossible. This is nearly the same as a declination letter for poor credit.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Financial assessment involves evaluating two main areas On March 2, 2015, the FHA implemented new guidelines that require reverse mortgage applicants to undergo a financial assessment. Although HECM borrowers are not required to make monthly mortgage payments, FHA wants to make sure they have the financial ability and willingness to keep up with property taxes …<\/p>\n","protected":false},"author":1,"featured_media":45,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-44","page","type-page","status-publish","has-post-thumbnail","hentry"],"yoast_head":"\n