Reverse Mortgages - Helping Seniors During Recession

Times are tough for many Americans, especially mature Americans on a fixed income. Fortunately, the Home Equity Conversion Mortgage (HECM) or reverse mortgage program allows for many mature American, who own their home and are in need of additional income, to use the equity in their home to survive the looming recession. With increased limits on reverse mortgages, lowered fees and no credit checks, mature Americans are able to payoff current debt, including their current home mortgage, use the money for additional income or for the purchase of a new primary residence.

According to the Government National Mortgage Association (GINNIE MAE) president, Joseph Murin, "the reverse mortgage market is stable, secure and steadily growing." This statement comes after reports for the month of April recorded a 16.9 percent increase from last year loan totals. The fiscal year of 2008 ended with more than 112,000 reverse mortgages being written and issued to mature Americans in need of a financial relief.

The reverse mortgage program requirements are that only mature Americans, age 62 and older apply for the services. When applying the borrower must complete a counseling session with a Housing and Urban Development, HUD, approved HECM counselor. Upon successful completion of a ten question quiz, based on your understanding of the requirements of the HECM program, you will receive a Certificate of HECM Counseling to take to your selected lender. Your lender will assess your current and future financial abilities to repay the reverse mortgage once the loan becomes mature. If your assessment proves beneficial and sound you will then have your home assessed to determine the loan amount you are eligible for. There are no credit requirements for your loan amount, just the current value of your home. Once your home is assessed your loan will be created and all the fees will be required to be paid at closing, including any outstanding debt which can potentially create issues with repayment and the current mortgage on your primary home. After all fees have been paid including debt, you will have the option of receiving a lump sum, line of credit, monthly payment or a combination of payment options.

While the credit markets are tightening and the retirement savings markets are plunging the reverse mortgage market is seeing substantial growth based on the education and smart decisions of mature Americans like you. You are guaranteed your monthly payments from your selected lender because your loan will be backed by Federal Housing Authority, FHA. You can avoid costly medical expenses, home improvements, and other bills, all while remaining in your current home. Reverse mortgages are proving to be a recession proof market with an increase in the lending limits, increase in approved applications, increase in the accountability of HUD approved counselors and lenders and a decrease in loan fees.

Reverse mortgages offer you a peace of mind for ensuring your quality of life remains intact while you remain in your current home or use purchase a new primary residence and gain the additional income you need in this economic climate. For more information visit Reverse Mortgages.