Trouble is brewing in China’s property market, which is emerging from a major debt-fueled construction boom. A liquidity crisis that was highlighted last year by the default of China Evergrande (OTCPK:EGRNF) has only worsened worse, with the largest real estate developer in the country fail to deliver a “preliminary restructuring plan” that it had promised by the end of July. The erosion of confidence in the property sector also saw sales of the country’s top 100 developers plunge last month by almost 40% year-on-year, according to data from Chinese property provider CRIC.

Instantaneous: Millions of people across China are struggling to finish their homes on time, and a growing boycott of mortgage payments in more than 90 cities threatens to worsen the situation. The debt crisis was already unsustainable before the current crisis, with the average mortgage payment accounting for more than half of a buyer’s monthly income. Seeking to revive the sector, China is working on a nearly $150 bailout fund to complete stalled property projects and avoid a backlash from angry homebuyers.

Interestingly, the bailout is not intended to help highly indebted developers complete their projects. Rather, it targets local governments (or local government-owned entities) to take over the projects and apply for loans from the PBOC or commercial banks to carry them out. Concerns remain about the effectiveness of the strategy, given that local governments could also struggle to complete projects, or how older creditors (such as suppliers, contractors, bondholders, etc. ) will be stacked in the event of new funding.

Outlook: Chinese cities are already saddled with heavy debt as they shoulder much of the spending on education, infrastructure, and health care (like mass COVID testing programs). The slowing real estate market may force more local governments to limit spending, adding yet another drag to China’s weakened economy, which grew just 0.4% in the second quarter. “The possibility of a vicious circle – falling house sales and prices, growing distress among developers and deteriorating local government finances – is concerning from a growth and financial stability perspective,” Oxford Economics wrote. in a research note.

AND F : FXI, KWEB, CQQQ, MCHI, ASHR, YINN, TDF, CHIQ, GXC, EWH, KBA, YANG, CXSE, CAF, CWEB, PGJ, KURE, CHIX, CYB

A reverse mortgage may be a reasonable choice to boost cash flow to your balance sheet if your budget in your retirement years seems a little tight. Are reverse mortgages, on the other hand, available to everyone? Certainly not. 

The amount of equity in your house is one of the essential variables in establishing your eligibility for a reverse mortgage. Is there enough equity in your home to borrow against?

What Is a Reverse Mortgage and How Does It Work?

A reverse mortgage is a type of loan that permits homeowners over the age of 62 to borrow money against the equity in their principal residence. Rather than paying money to the bank to gradually gain full ownership of the house, the lender pays you in monthly installments, a lump sum, or a line of credit. The reverse mortgage is paid off when you sell your home or pass away, and your heirs sell it.

You can try bridge for free if you want more loan options.

Reverse mortgages are divided into three categories:

• Private lenders offer proprietary reverse mortgages. They don’t have the same level of oversight as a HECM, but they give homeowners with high-value properties more options.
• State and local governments and non-profits often offer single-purpose reverse mortgages to low-income homeowners who need money for house repairs or property taxes.
• The Federal Housing Authority (FHA) insures home equity conversion mortgages (HECMs), which need mortgage counseling.

The most prevalent reverse mortgage is the HECM, which has the most defined specifications. 

Here, we’ll talk about how much equity you’ll need for a HECM. Your equity is determined not just by the amount you paid for your existing home but also by the home’s value. 

Your equity will be more significant if you’re still paying on your mortgage, but your home has appreciated due to a robust property market.

Identifying Your Equity

Because reverse mortgages are secured by the equity you’ve developed in your house, you’ll need to know how much you have. An appraisal is required as part of the HECM application process to determine the current value of your home.

It’s easy to figure out how much equity you have once the house’s market worth has been assessed. For homeowners who own their homes outright, the solution is simple: They own the entire equity. It will be less if you still have a mortgage to pay off.

Equity Standards That Vary

Regrettably, there is some misunderstanding over the amount of equity required to qualify for a HECM. An often-quoted rule of thumb is that you must have 50% equity in your property to qualify. The Department of Housing and Urban Development (HUD) of the United States, on the other hand, is less specific in its standards. 

According to HUD, homeowners must either own their property outright or have paid down a “significant amount” on their mortgage. With that wiggle room, the quantity of equity is simply one part of the qualifying criteria for approval, including the borrower’s age and financial history.

While there is no easy-to-find standard for how these characteristics affect approval, FHA-approved lenders consider when assessing how much money you can borrow. HUD has set a limit of $970,800 for everyone to borrow in 2022, regardless of equity. 

What Happens to Any Unused Equity When I Sell My House?

Assume you have a reverse mortgage on your house and don’t use the equity before you die or move out. In this case, the remaining value is yours, or your heirs to pocket as profit after the home is sold. Mortgage insurance premiums cover the amount owed if you use all of your equity plus some. With a HECM, you can’t owe more than the house is worth.

How can I figure out how much equity I have?

The difference between the current appraised worth of your home and the amount you owe on it is your equity. Because property values fluctuate according to market conditions, your equity can rise or fall depending on the appraised worth of your home. Even if your payments remain the same during a period of high house values, your equity will grow. On the other hand, in a housing catastrophe, your equity may plummet as your investment—your home—depreciates in value. 

What is the maximum amount I may borrow with a reverse mortgage?

The amount you can borrow is determined by your age, interest rate, and the lesser of the home’s assessed value or the HECM FHA mortgage limit. This will differ from person to person. 

Older adults are usually able to borrow more money. You can borrow more money if the interest rate is lower. Because the interest will be paid when the house is sold to pay off the reverse mortgage, you won’t have to spend all of your equity before you relocate or die away.

Final Thoughts

Having equity in your home is a valuable asset in your retirement years, especially if you’re interested in a reverse mortgage. Because reverse mortgages are only available to seniors, large equity accumulation is highly likely. Other options, such as a home equity line of credit (HELOC), may be better if you bought your house recently and don’t have enough equity.

Mayor Brandon M. Scott announced a new program Thursday to support Baltimore homeowners facing a mortgage crisis.

The Emergency Mortgage and Housing Assistance Program (EMHAP) will help Baltimore homeowners experiencing economic hardship related to the COVID-19 pandemic whose homes are at risk of foreclosure. The Scott administration has earmarked $3 million in CARES Act Funds (CDGV-CV3) from the Community Development Block Grant for this program.

Assistance will be provided as a grant in the form of a direct payment to the mortgage company and may be applied to overdue mortgage principal and interest and any other overdue charges included in the mortgage payment (including including homeowner’s insurance, property taxes and private mortgage insurance).

Homeowners without a mortgage can also receive help with overdue home insurance, property taxes and water bills. Payments can be applied to arrears for any consecutive six-month period since March 1, 2020.

To be eligible for EMHAP, owners must have an annual gross household income of 80% AMI or less (priority will be given to applicants below 50% AMI), occupy the property as their primary residence, and have a mortgage with an overdue balance or, if the applicant does not have a mortgage, home insurance, property taxes or water bills with overdue balances.

The City of Baltimore Department of Housing and Community Development (DHCD) will administer the program. The EMHAP application is entirely online. Applicants can enter information and upload supporting documents. Designated staff will verify applicant eligibility, obtain W9s from mortgage companies and process spending authorizations to issue payments.

]]> https://armingyourfarming.com/travis-county-opens-application-for-rent-and-mortgage-relief-program-as-eviction-protections-expire/ Tue, 01 Mar 2022 19:32:00 +0000 https://armingyourfarming.com/travis-county-opens-application-for-rent-and-mortgage-relief-program-as-eviction-protections-expire/ Travis County spent an additional $9.2 million on rental assistance and mortgage programs. (Community Impact newspaper staff)

Applications for the new emergency mortgage assistance program, announced by the mayor of Toledo, Wade Kapszukiewicz, during the State of the City 2021, will be accepted from 9:00 a.m. on Monday, March 29 until 4:30 p.m. on Friday, April 16.

The program will provide assistance to 150 low-to-middle income households in the city, the mayor said.

“The pandemic has impacted everyone in our community and we are pleased to leverage federal funding to help homeowners continue to recover in 2021,” said Mayor Kapszukiewicz.

The program is operated by the Toledo Department of Neighborhoods and funded by $1,526,505 in Community Development-CV Block Grant funding.

Mortgage assistance will cover up to six consecutive months, including forbearance, overdue balances, late fees and penalties. Taxes and insurance can be paid if included in the regular mortgage payment. Residents can submit one application per property. Applicants’ gross household income must not exceed 80% of the area’s median income. Applications will be accepted, processed and approved on a lottery basis.

Applications will only be accepted electronically. The application and more information is available at toledo.oh.gov/mortgage. Applicants can email questions to [email protected] or call 419-245-1435.

There will be a pre-application workshop via Zoom at 6:30 p.m. today, March 26 at this link: https://toledo-oh-gov.zoom.us/j/84836132925.

There will be Emergency Mortgage Assistance program outreach meetings for members of the public to complete in-person applications with assistance, as follows:

• 11 a.m. to 6 p.m., March 30, at South Branch Library, 1736 Broadway
• 9:30 a.m. to 4 p.m., March 31, at Mott Branch Library, 1010 Dorr St.
• 9:30 a.m. to 4:30 p.m., April 1, at Reynolds Corner Branch Library, 4833 Dorr St.
• 11 a.m. to 6 p.m., April 6, at Lagrange branch library, 3422 rue Lagrange.
• 9:30 a.m. to 4:30 p.m., April 7, at Sanger Branch Library, 3030 West Central Ave.
• 9:30 a.m. to 4:30 p.m., April 8, at Birmingham Branch Library, 203 Paine St.
• 10 a.m. to 5 p.m., April 10, at main library, 325 Michigan St.
• 11 a.m. to 6 p.m., April 13, at Heatherdowns Branch Library, 3265 Glanzman Rd.
• 9:30 a.m. to 4:30 p.m., April 14, at West Toledo Branch Library, 1320 Sylvania Ave.
• 9:30 a.m. to 4:30 p.m., April 15, at Washington Branch Library, 5560, harvest alley

To be eligible, the following criteria must be met:

• The applicant must own a residential property of 1 to 4 units in Toledo.
• The owner must occupy at least one dwelling as his principal residence.
• Owner must have a first or principal mortgage with a forbearance or outstanding balance due to COVID-19.
• Mortgage must be current to February 29, 2020.
• The property should not be offered for sale.
• The applicant’s household must demonstrate a loss of income due to COVID-19.
• Applicants’ household must have a maximum family income equal to or less than 80% AMI.

The Kapszukiewicz administration has launched a number of programs to help Toledo during the pandemic:

• The Emergency Rent Assistance Fund, which has assisted approximately 700 eligible households with up to three months of rent payments.
• The Home at Last program, a down payment assistance program for eligible first-time home buyers. It helps income-eligible first-time home buyers with up to $7,500 to use towards a home purchase and up to $9,500 in target neighborhoods.
• The Emergency Micro Business Recovery Grant, designed to help for-profit micro businesses maintain or restart operations and retain jobs by providing up to $5,000 for eligible operating expenses.
• the Lead Safety Compliance Matchmaking Grant, a grant program to help landlords comply with the City’s Residential Rental Property and Lead Safety Compliance Act.
• Two housing assistance programs for homeless students at Toledo Public Schools, which are partnerships of the City, Toledo Lucas County Homelessness Board, Toledo Public Schools, Northwest Lutheran Social Services ‘Ohio and Centers of Financial Opportunity.

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A federal moratorium on evictions by the Centers for Disease Control and Prevention ends Dec. 31, leaving some Nashville residents struggling with rent and mortgage payments looking for help. Supplemental unemployment benefits under the CARES Act are also being phased out this month.

After welcoming a new baby, losing her job and welcoming her 10-year-old brother, Callie Clark and her fiancé were struggling to make ends meet. Help came just in time their family of six was watching months of rent arrears and possible eviction.

Clark, 28, said she had worked since she was 16 and this was the first time she had to deal with unemployment, rent assistance and the threat of eviction.

“You don’t expect all of this to happen at the start of a pandemic, but when it does, you just need a little bit of resources,” Clark said. “I hope this story comes out and lets everyone in a situation like me know that there are resources.”

FOR SUBSCRIBERS: Nashville family facing eviction gets rent relief

Here are four options for those who need housing assistance in Nashville.

The Metro Action Commission

The City of Nashville is offering assistance to residents behind on their rent or mortgage due to loss of income during the coronavirus pandemic.

The Metro Action Commission has opened applications for a recovery program that provides three to six months of emergency assistance to people facing eviction or foreclosure, according to a city news release. Applicants must be Davidson County residents and in good standing by March, the statement said. They should also not be accepted in any other reimbursement program.