If you’re tapping into your home equity through a reverse mortgage, you have probably heard by now about the new reverse mortgage “financial assessment” that is soon to be part of the process of getting a government-insured Home Equity Conversion Mortgage (HECM.)
The financial assessment, which is like the assessment that a “forward” loan originator conducts for traditional mortgage borrowers, is being introduced this year as an extra safeguard for borrowers.
Reverse mortgage set-asidesThink of a reverse mortgage set-aside as a designated pool of money that is budgeted upfront for your expenses down the road.
The reverse mortgage set-aside is similar, but if you require a set-aside, it will be calculated based on how much you are likely to need for the rest of your life.
For more information, check out this trusted 3rd Party Material: HUD Financial Assessment and Property Charge Guide (.pdf document) | To read full story, visit https://startuparound.com/read/1577277009.9757178/How-The-Reverse-Mortgage-Set-Aside-Works?ref=audio_experience