Most seniors prefer one-level housing and close to areas they are familiar with.  Big cities need more senior, affordable housing near neighborhoods in the inner city and again NO STEPS to climb.  Also services such as housekeeping, home heat care, cleaning companies, handyman services, elder law attorneys, grocery delivery need to be available close by.   Lenders need to understand reverse mortgages and creative financing options.  Most seniors prefer TO AGE IN PLACE and Realtors can help line up these services.  The idea is to keep people in their home for as  long as possible and keep those homes safe and affordable.

6.78% more homes sold in 4th quarter 2013 as the same quarter in 2012.  The median price was $172,600, up 8.48% from the years before.  The average price is up 8.88% to $226,216.  This is data collected by the Texas Association of Realtors and commented on by Dr. Jim Gaines at the TX A&M Real Estate Center.  These increases are consistent throughout the state.  This high demand continued to contribute to a shrinking inventory.  The statewide inventory of homes decreased to 3.6 months from a well balanced market of 6.5 months.  TYLER AND EAST TX ARE STILL HIGHER THAN THE STATE AVERAGE. ” The shortage of inventory could inhibit sales volumes.  With interest rates still down, buyers should continue to expect to compete for desirable properties”.

Now the borrower’s ability to maintain their property taxes and homeowner insurance over the life of the loan will be considered.  Was not before.  This change is intended to reduce lenders’ risk that a borrower fails to maintain the property or defaults on key obligations.  Borrowers will need to set aside part of their loan proceeds to pay for property taxes and insurance or withhold part of their monthly disbursements for these payments.  Lenders are now expected to put both spouses’ names on a reverse mortgage, even if both parties don’t appear on the title to the property.  REVERSE MORTGAGES CAN HELP SOME OLDER FOLKS, BUT MUST STUDY CAREFULLY!!

Federal Housing Administration which insures most  reverse mortgages suffered loan losses, due to market factors and borrower misuse of the program.   The lending formulas are complex, most borrowers will now qualify for a lower principal limit (borrowing power) but more in up-front premiums (the cost of the reverse mortgage).  To encourage borrowers to use for long-term planning (instead of crisis management), borrowers will face new limits on the amount of money that can be taken out at closing and during the 1st year  of the loan.  MORE TO COME

The Federal Housing Administration (FHA) yesterday announced that it is granting expanded authority to lenders to accept electronic signatures on documents associated with mortgage loans.  The new policy, which takes effect immediately, allows e-signatures on origination, servicing and loss mitigation documents, as well as FHA insurance claims, REO sales contracts and related addenda.  For now, e-signatures will not be accepted on the mortgage loan itself.  FHA plans to begin accepting e-signatures on forward mortgage notes by the end of the year.  If YOU ARE DOING AN FHA LOAN, BUT SURE TO GET WITH A LENDER WHO DOES MANY OF THEM, as some lenders to NOT.