New FHA Reverse Mortgage Program Gives
More Flexibility To Senior Homestead

Traditionally Reverse Mortgages have given Seniors age 62 and older the ability to convert a portion of their home's equity into tax-free funds.  The amount of funds they can qualify for is based on their age, the property's value, and current interest rates.

Recent changes in the FHA Reverse Mortgage Program have enabled Senior homebuyers age 62 and older to purchase a new primary residence and obtain a reverse mortgage in simultaneous transactions with no monthly mortgage payments.  It works by allowing the Senior to combine reverse mortgages with a down payment from their current home sale or other assets to purchase a new home.  It now gives the Senior an opportunity to purchase a new primary residence without taking on new mortgage payments.  They may want to downsize or "right size" for their particular needs -- single level living, move to a Senior Community, or move closer to family and friends.

Example of how the program works:

A woman, 74 years old, wants to move closer to her children.  She sells her older home for $200,000.  With the reverse mortgage for purchase, she was able to buy a $300,000 single level condo by putting $123,000 down and the reverse mortgage for purchase provided the additional funds she needed.

She was able to move to a place more suitable for her needs and closer to her children.  She will never make a mortgage payment and she also has $77,000 in cash left from the sale of her previous home to help her financially in the future. 

Contact a Reverse Mortgage Specialist or FHA for more information regarding stipulations and requirements for the program.

         Click Here To Find a Reverse Mortgage Specialist Near You

Extension & Expansion of Home Buyer Tax Credit
submitted by Mark Vedder, Tomorrow's Real Estate, Inc. - 651-433-2937

The latest tax credit that's been mentioned in the news as of late is the Home Buyer's Tax Credit which has now been extended into the Spring of 2010. 

Below are links to the guidelines and questions and answers to the latest tax credit extension that Congress has enacted.  It will allow not only first time buyers, but move up buyers to get a credit to buy homes that seniors may want to sell.

This credit can also be available to seniors who have lived in their home for at least 5 consecutive years of the past 8. This may make them eligible for a new $6,500 credit for them if they sell and buy a downsized home or townhome.

FAQ:  Home Buyer Tax Credit Changes

Home Buyer Tax Credit Changes