Reasons to Consider a Reverse Mortgage

If your cash flow has been depleted because your income is lower, your investments are worth less or your expenses have increased (like for medical expenses) a reverse mortgage evaluation may be just what is needed. Most recently I helped two gentlemen who were having cash flow issues by educating them on how a reverse mortgage would help. And, of course, they were both surprised that they did not give up ownership of their homes to the bank, as many people believe. That’s right, the title to the home stays with the borrowers and when the home is sold and loan paid off, any remaining equity goes to the owner or to the estate. Please pass along any questions.

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First Time Home Buyer Tax Credit

If you’ve not owned a home in the past 3 years you can purchase one using a reverse mortgage AND participate with the tax credit as well. Here are some of the stipulations:

• the sale must take place by June 30, 2010 providing there is a binding sales contract on or before April 30, 2010.
• the tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

If you’ve owned a home during the past three years you can still paticipate but the credit is reduced to $6,500.

There are income limits that need to be reviewed.

Call with further questions

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Changes to Reverse Mortgages

It’s now 2010 and there have been a number of changes that will affect whether a reverse mortgage is going to work for you.

• there have been changes in the principal limit (as of October 1st 2009).
• the loan limit of $625,500 has been extended for the balance of 2010.
• the ability to use a reverse mortgage for the purchase of a home should be understood.

However, the reverse mortgage product is alive and well. If you are having cash flow issues, are at least 62 years of age, have a desire to remain in your home and have at least 50% equity, you should be educated on how a reverse mortgage could be used.

Send me an email or give me a call with any questions.

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An Introduction

My name is Bob Groening and I’ve worked in the mortgage arena for more than seven years. Four years ago I educated myself on the Reverse Mortgage product and began educating elder adults on their use. I’ve just started this blog to continue that education and find others who would like to learn more.

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