Seniors Get a Gift from the New Housing Law

Posted by News Feeds

August 13, 2008

Seniors Get a Gift from the New Housing Law,

The law makes several significant changes to reverse mortgages.

When trying to figure out who benefits from the new housing law, don’t forget to count seniors who are in the market for a reverse mortgage. These mortgages let seniors convert some of their home equity into a stream of income, a line of credit or a lump sum. The money does not have to be paid back until the last borrower sells or dies. For retirees who are house-rich but cash-poor, the new law offers some significant changes.

Homeowners age 62 and older will now be able to tap a greater amount of their home’s equity. The maximum amount for a reverse mortgage has been upped nationwide by more than a quarter of a million dollars, to 5,500. That flat limit replaces the old rule that set limits from 0,160 to 2,790 depending on where the borrower lived.

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Post from: Reverse Mortgage Loan Blog

Seniors Get a Gift from the New Housing Law