A strategy for seniors who can't afford their home. 
A common problem among senior homeowners in that they no longer have the income to pay their mortgage or real estate taxes. They need a good way to convert equity in their home into cash.

Lets assume the homeowner wants to stay in their home. There were a few possible loan programs before our current down market. The one I used to recommend was a Home Equity Loan and invest the money into a mutual fund or municipal bond account, but we all know that is not a good option anymore.

Another was the FHA's Home Equity Conversion Mortgage but the problem now lies with the restrictive underwriting rules. Most borrowers in this situation are not able to verify enough income to qualify for the loan.

So that leaves but one more good choice - a Reverse Mortgage. I have heard people talk with fear in their hearts about this program but the rules are not to be feared. By taking a look at the current rules you will learn that it is much like a regular loan, only backwards. Because the homeowner has so much equity in the home, the risk of loss to the lender is very low thereby keeping interest rates low. This loan allows the borrower to take enough money each month for living expenses, only taking money when they need to. Yes, the balance owed on the loan increases, slowly, but is controlled by you and how much extra cash you need each month. At the end of the loan, yes the balance needs to be paid off. This is the same for mortgages that are refinanced. And no they, the lenders, do not take the home.

Take a look at all your options and be sure to work with a mortgage lender that is willing to spend the time it takes to explain all you need to feel comfortable with your finance decisions. You have worked long and hard to get where you are and you deserve the time and respect to help you understand what you are signing. You deserve to stay in your home.

Contact www.MinocquaMortgage.com or marcia@minocquamortgage.com for more. We look forward to answering your questions!