HUD’s Recent Changes to HECM Reverse Mortgages are Positive, Although Some Will Find it Harder to Qualify

Last fall, HUD announced changes to the Home Equity Conversion Mortgage (HECM) program that took effect as of October, 2017.  HECMs are only available to homeowners over age 62 and are commonly referred to as “reverse mortgages.”  The media widely reported on the changes to the program, pointing out why HUD decided to make the changes and what the changes would mean to homeowners who want to take advantage of the HECM program going forward.  (And the changes only impact HECMs going forward, by the way.  They do not affect homeowners with an existing HECM.) Here are the highlights of what HUD’s recent changes to the HECM program are all about… Homeowners overall will be able to borrow a bit less.  According to the Wall Street Journal (as reported on, “the average borrower at current interest rates will be able to borrow roughly 58% of the value of their home, down from 64%.”  It’s hardly a…

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