Reverse Mortgage Limits Increased

Many older Americans who have resided in theirhome, the age of the home-owner and the anticipated
houses for many years or decades saw the price ofIRs. The reverse mortgage does not need to be paid
their houses rise dramatically, particularly recently.back until the borrower moves out of the home once
However, in high cost areas, for example theand for all. HUD pronounced more than 308,000
Northeast and West, home values have overreachedseniors have used the federally-insured HECM loan
the Congressionally-mandated cap of $362,790 forprogram since 1990 to convert the equity in their home
getting an FHA-backed reverse mortgage - leavinginto money with no need to move. The volume of new
millions of seniors without access to the monetaryreverse mortgages insured by the FHA's HECM
security this vital program offers. The Expandingprogram has increased 10-fold during the last 6 years.
Homeownership Act of 2007 would make reverseAs well as providing larger access to reverse
mortgages available to an extra 2,000,000 seniors bymortgages, The Expanding Yankee Homeownership
raising the FHA's Home Equity Conversation MortgageAct of 2007 would address growing fears about
( HECM ) loan limit equivalent to the Fannie Mae /augmenting home repossessions and high-risk
Freddie Mac conforming loan limit. By skyrocketing andmortgages. The law would protect and preserve the
simplifying the loan amount, this change would helpYank Dream of homeownership by modernizing the
people seniors who have houses valued above thisFHA and giving house purchasers access to a safe,
FHA loan limit of $362,790 but less than $600,000, getfair and reasonable alternative to exotic subprime
a reverse mortgage thru FHA. Eligible seniors would stillloans. The law is presently outstanding before the U.S.
need to be 62 years old or older and have paid offHouse of Delegates . Get a quote and see what you
their mortgages or have only a tiny mortgage balancequalify for.
remaining. The loan amount relies on the value of the