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8 LIVE IT UP! FRIDAY, APRIL 29, 2016 SANTA CRUZ SENTINEL POINT #1 Currently, a reverse mortgage has minimal income and credit qualifications. The basics require you to be at least 62 years of age, own and occupy the home as your primary residence. Starting March 2, 2015, HUD (the governmental body that regulates this federally insured loan) will require a Financial Assessment of all applicants, which includes a review and analysis of your income and credit status. This Financial Assessment could result in less cash available at closing or possibly not qualifying at all. If you are considering a HECM, you may want to apply in time to have your loan processed prior to March 2, 2015. Loans processed after this date will be subject to the Financial Assessment, requiring prospective borrowers to provide proof of income and a satisfactory credit history to qualify. POINT #2 Billions in home equity lines of credit (HELOCs) are due to reset in the next few years; fueling fear in many senior homeowners. According to the Office of the Comptroller of the Currency, the majority of HELOCs in the U.S. will reset over the next four years. "Approximately 58% of all HELOC balances are due to start amortizing between 2014 and 2017." HELOCs are typically for a ten year period where borrowers draw on their lines of credit and are only required to make interest payments each month. After ten years, the credit lines reset, and borrowers must then begin making principal and interest payments each month if they qualify for the loan. There is the rub, since many seniors will not qualify for these new loans because of credit history and income levels; a reverse mortgage Become Smarter About Reverse Mortgages By Dan Casagrande NMLS #561104 831.423.2900 • dcasagrande@RFSlends.com • www.ReverseManDan.com Synergy One Lending, Inc. d/b/a Retirement Funding Solutions NMLS 1025894. Business Oversight under the California Residential Mortgage Lending Act materials are not from HUD or FHA and the document was not approved by I have the honor of being named a top producing Reverse Mortgage Expert with hundreds of loans in my 10-year career. Helping homeowners, making new friends is my job and my pleasure. I'll even come to your home - no obligation. Just give me a call. 2015 2015 SANTA CRUZ AWARD BEST OF Dan Casagrande, MBA Dan Casagrande, MBA Local Reverse Mortgage Expert continued on pg. 9 bigstockphoto.com