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Mortgage Articles

The Reverse Mortgage Wholesale Market - The Money Behind Your Reverse Mortgage
Home Loan Tax Breaks

If you are interested in exploring a refinance mortgage as a way to help fund your retirement years, you might benefit from knowing what finance mortgage wholesale loans are and how they will affect your ability to get a loan mortgage.

refinance mortgage wholesale products are what lifetime mortgage lenders purchase at a discounted interest rate, and then offer to borrowers like you after raising the interest. You, as an individual, are not eligible for a lifetime mortgage wholesale loan.

Who Offers Reverse Mortgage Wholesale Products?

Refinance mortgage wholesale loans are only available through three sources. The Federal Housing Authority, or FHA, the Financial Freedom Cash Account, and Fannie Mae will all provide them. The FHA and Fannie Mae finance mortgage wholesale products are both backed by federal guarantees. The Financial Freedom Cash Account is offered by Shearson Lehman and privately guaranteed.

While many people think that Fannie Mae, which was started in the administration of Franklin D. Roosevelt, is a government run program, but is it actually shareholder owned. It does, however, have a federal charter and is authorized to operate in the loan mortgage wholesale market to make sure that mortgage lenders have funds available to offer affordable mortgages to the home buying public.

Because Fannie Mae does such a high volume of finance mortgage wholesale business, its operations are strictly regulated, and the guarantee backing their loans is as solid as the one backing the mortgage loan wholesale loans at the FHA and HUD. Fannie Mae has a guaranteed Homekeeper Mortgage Foreclosure wholesale loan which will allow the borrower to receive as much as $417,000. The Fannie Mae program is unique because it will let borrowers use the loans on their current homes to cheaper ones.

The HECM From The FHA

The Mortgage Foreclosure wholesale product from the FHA is known as the HECM, or Home Equity Conversion Mortgage. The HECM has a borrowing limit of $360,000 but the maximum allowed to a particular individual will depend on the area in which his or her home is located. The HECM is far and away the most widely available mortgage wholesale product, and backs nine out of every ten lifetime mortgages in the US.

The HECM is guaranteed not only by the FHA, but by HUD, the US Department of Housing and Urban Development. This guarantee means that you as a borrower, will be sure to receive the full amount of money promised to you by your lifetime mortgage lender, and that your lender, in turn, will be sure to get back the full amount of the money they loan you, as well as the full amount of accumulated interest, should your home eventually be sold for less than the amount of the finance mortgage. Both the Fannie Mae and FHA refinance mortgages are available to borrowers in every state.

The Financial Freedom Cash Account

The Shearson Lehman Financial Freedom Cash Account, however, is available only in twenty-four states, and is aimed towards homeowners who wish to take out reverse mortgages on homes worth half a million dollars and up. There is no maximum placed on the size of a Financial Freedom Cash account Mortgage Foreclosure, which is backed by a private guarantee.

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