Financial Freedom Reverse Mortgage Legislation

July 18th, 2007 | Stacey | Financial Independence, Financial Freedom Opportunities, Financial Freedom

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Relevant financial freedom reverse mortgage legislation has been introduced that could help about two million American seniors tap into built up equity in their homes by getting reverse mortgages, as evidenced by a U.S. Department of Housing and Urban Development (HUD) estimate that came out this week.

According to Alphonso Jackson, the HUD Secretary, “If you love your home, and want to stay in it for years to come, then a reverse mortgage is your best and safest bed for retirement security. Reverse mortgages offer seniors the financial freedom they deserve and this legislation could help two million more older Americans turn their homes into retirement nest eggs.”

Jackson is encouraging Congress to rapidly enact The Expanding American Homeownership Act of 2007, which would make all this possible for seniors over the age of 62 so they can become financially free for retirement.

The current home value cap on reverse mortgages is $362,790 and with rapidly increasing values in the West and Northeast, this ccap is holding many seniors back from getting the financial security that the reverse mortgage program offers. The Expanding American Homeownership Act of 2007 seeks to raise the FHA Home Equity Conversion Mortgage (HECM) loan limit to be the same as the Fannie Mae/Freddi Mac comforming loan limit. As a result, reverse mortgages would be available to seniors with homes valued over $362,790 and under $600,000.

Since 1990, over 308,000 seniors have taken advantage of the financial freedom reverse mortage opportunity.