Reverse Mortgages for Seniors
It used to be that if you were age 62 or older, there were only two ways to get cash out of your home. You could sell it or you could borrow against your home equity. But now, with reverse mortgages, seniors can tap into the home equity they've built up without moving or taking on extra debt.
If you're just starting out and want to learn more about reverse mortgages, read our brochures and fact sheets that describe each product. Our Find a Counselor Search can help you locate a reverse mortgage counselor in your area.
If you already know a reverse mortgage is for you, Fannie Mae's publication, Money from Home: A Consumer's Guide to Reverse Mortgage Options (PDF), is a required counseling tool and an excellent source of in-depth information on reverse mortgages for homeowners ready to apply. The guide contains detailed information on the Home Keeper� mortgage and the U.S. Department of Housing and Urban Development-insured Home Equity Conversion Mortgage (HECM). The publication also has information to help you determine what type of reverse mortgage is right for you, and worksheets to help you get started.
After deciding to apply for a reverse mortgage, you should speak to a Fannie Mae lender partner and request an application form. Our list of Reverse Mortgage Lenders (PDF) can help you find lenders who offer the Home Keeper� Mortgage and the FHA Home Equity Conversion Mortgage (HECM).
Fannie Mae does not lend money directly to consumers. Instead, we work with mortgage lenders to make sure they have money to lend. Lenders who work with Fannie Mae have a broad array of mortgages to offer consumers.
Fannie Mae - Last Revised: May 24, 2005
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HUD'S NEIGHBORHOOD STABILIZATION PROGRAM
NEIGHBORHOOD STABILIZATION PROGRAM 1 (NSP1)
The Neighborhood Stabilization Program was established by the Housing and Economic Recovery Act of 2008 (HERA). The HERA version of NSP (NSP1) provided $3.92 billion in funding for emergency assistance to states and local governments. The State of Maryland was allocated $24 million.
NEIGHBORHOOD STABILIZATION PROGRAM 2 (NSP2)
The American Recovery Act and Reinvestment Act of 2009 (ARRA) provides an additional $2 billion in NSP funding (NSP2) but makes several fundamental alterations to the program. The first fundamental alteration established NSP2 as a competitive program and not a formula distribution used under NSP1. The second fundamental change to the program made eligible non-profit organizations, as well as, states and local governments.
Per the NSP 2 Notice of Fund Availability (NOFA) issued on May 4, 2009 by the Department of Housing and Urban Development (HUD), the Applicant is required to post information on 1) amount of money, 2) use of funds, and 3) target geography no fewer than 10 calendar days prior to submission to HUD to solicit citizen comments. This information was posted by the Housing Options & Planning Enterprises, Inc. (H.O.P.E.) on July 7, 2009. On or about Tuesday, July 14, 2009, the H.O.P.E. will also publish this information in the Prince George’s Journal Newspaper.
H.O.P.E. will be submitting their application to HUD on or about July 17, 2009. The application will include comments received during the public comment period which ends July 17, 2009 at 12:00 P.M.
AMOUNT OF MONEY
H.O.P.E is requesting a total of $9,850,000 of NSP 2 funds.
USE OF FUNDS
H.O.P.E. is applying for NSP 2 funds to undertake the following NSP eligible uses:
Program A:
Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties.
Downpayment & Closing Cost Assistance Program - $2,000,000
H.O.P.E. will make downpayment, closing costs and other financing products available to households at or below 120 percent of area median income. Borrowers will be required to qualify for fixed interest rate first mortgage loan. Borrowers will then be eligible to apply for downpayment, closing costs and other financing products. Total funds available will be restricted to the amount necessary to ensure long-term affordability and sustainability for the homebuyer. This program will be managed by H.O.P.E. staff who will work directly with interested homebuyers and realtors.
In accordance with requirements, participants will be required to attend a minimum of eight hours of HUD-approved homebuyer counseling.
Program B:
Purchase and Rehabilitation of Single Family Homes and Residential Properties Abandoned or Foreclosed Upon in Order to Sell, Rent, or Redevelop - $4,000,000
The program will facilitate the acquisition and rehabilitation of abandoned or foreclosed single-family homes. Upon rehabilitation, single-family homes will be marketed and sold to households with incomes at or below 120 percent of area median income. All single-family homes acquired and rehabilitated through this program will be in compliance with the applicable laws, codes and other requirements relating to housing safety, quality and habitability, in order to sell, rent or redevelop such homes and will also include the NSP2 recommended energy-efficient and environmentally-friendly green elements.
In accordance with requirements, participants will be required to attend a minimum of eight hours of HUD-approved homebuyer counseling.
Program C:
Acquisition and Rehabilitation of Rental Housing - $2,500,000
The program will be used to acquire and rehabilitate foreclosed or abandoned properties suitable for rental housing and/or lease-home-ownership opportunities (condominiums, duplex, multifamily). After acquisition and rehabilitation, such housing will be code compliant, energy-efficient and environmentally-friendly green elements. Units will be restricted to very low-income households at rents affordable to such households. H.O.P.E has budgeted more than 25 percent of the anticipated NSP grant and will use this program to meet its very low-income requirement.
Program D:
Planning & Administration - $850,000
The Administration will provide funding for H.O.P.E to operate the Neighborhood Stabilization Program 2 (NSP2).
Program E:
Housing Counseling - $500,000
Per HUD Guidelines, the purchaser must complete eight (8) hours of housing couseling and financial literacy training from a HUD approved housing counselor. Housing Options & Planning Enterprises, Inc. is a HUD approved counseling agency and provides housing and credit counseling to consumers seeking to finance, maintain, or own a home. Our Housing Counseling Program supports the delivery of a wide variety of housing counseling services to homebuyers, homeowners, and low-to moderate-income renters. The primary objectives of the program are to expand homeownership opportunities and improve access to affordable housing.
TARGET GEOGRAPHY
H.O.P.E will target the following locations in Prince George’s County, Maryland: Temple Hills, Oxon Hill, Fort Washington, Clinton, Capital Heights, and Suitland.
PUBLIC COMMENTS
If you would like to comment on any of the programs, please send your comments by emailing or writing to the following address by July 17, 2009 at 12:00 P.M.:
Donna Badgett Hurley
Executive Director
H.O.P.E.
6192 Oxon Hill Road, Suite 405
Oxon Hill, MD 20745
donnahurley@hopeinconline.com
