Weeks after the citizens of Texas voted to amend the state’s constitution to allow older citizens, 62 years of age and older, the ability to obtain a HECM for Purchase (or Reverse Purchase), the National Reverse Mortgage Lenders Association has announced, just in time for the New Year, that the loan is finally available in Texas.
According to an article published in Reverse Mortgage Daily, this approval makes Texas the last state to allow its citizens ability to obtain a Reverse Purchase. While they may have been behind on the times for a while, it seems Texas has finally caught up.
While the amount of seniors who will use the Reverse Purchase has yet to be determined, it’s important that they have the option available should they ever want, or need, to get one in the future. I think choice is an important factor in any situation, and this is an important step forward for Texas.
Even more important is how quick Texas and HUD has been able to implement the HECM for Purchase after citizens approved amending the state constitution.
NRMLA State and Local Committee Chair Scott Norman has stated that Karin Hill, HUD director of Single Family Program Development, said in an email:
“…our policy has been to require to ensure that their loan documents contain language required under the legislation as well as meeting HUD general requirements.”
There a still some details left to be ironed out, one of which includes coordinating with the Texas Real Estate Commission and the title industry in order to provide coverage for purchase-specific issues. Once these are taken care of lenders will be able to start receiving applications for the Reverse Purchase.
– See more at: http://activerain.com/blogsview/4289849/hud-makes-hecm-for-purchase-available-in-texas#sthash.KuiMnZtb.dpuf