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Fred Thompson
FHA puts new limits on reverse mortgage program for seniors
FHA puts new limits on reverse mortgage program for seniors

WASHINGTON — For homeowners who were looking to the federal government's reverse mortgage program to supply lots of cash for their retirement years, here's a heads-up: The pipeline just got narrower. Pressed by Congress to slash losses, the Federal Housing Administration recently outlined a series of steps designed to limit the maximum amounts that seniors can draw down on their homes and to make qualifying for a reverse mortgage tougher. Starting in January, applicants for FHA-backed reverse mortgages for the first time will have to qualify under comprehensive new "financial assessments" — covering credit history, household cash flow and debt levels...

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