New Reverse Mortgage Product Available from FHA

The Federal Housing administration (FHA) has announced a new and modified version of its Home Equity Conversion Mortgage (HECM) product today. Effective October 4, 2010 borrowers will have the option of choosing the HECM Saver or the HECM Standard.
The HECM Saver is a second reverse mortgage option that will allow lowering upfront loan closing costs. The upfront Mortgage Insurance Premium (2% of the appraised value) has been essentially eliminated. Homeowners will qualify for a smaller amount than with the HECM Standard loan. The loan option is available for all HECM case numbers that are or will be assigned on October 4, 2010.