Real Estate News

Business

The Mortgage Professor: Future income replenishment with a reverse mortgage

The more I work with home equity conversion mortgages – reverse mortgages offered through the Federal Housing Administration – the more convinced I become that the HECM is the most underutilized financial tool available to consumers in the U.S. Among the important reasons for underutilization is that HECMs are more complicated than any other financial instrument offered to consumers. They are complicated in order to meet a wide diversity of senior needs, but this poses the challenge of matching the individual senior's need to the appropriate HECM option or options. Many, if not most, seniors are not up to that challenge on their own, and the available decision support is poor.

Business

The Mortgage Professor: Perspectives on down payment requirements

The down payment required on a home mortgage is the single most important hurdle that prospective home purchasers must surmount. This article explains what a down payment is exactly, looks at some possible sources of down payment funds, explains why the down payment is critical to lenders, and describes the requirements today.