With the Economic Stimulus Package up next the President is just a signature away from siging in to law the legislation that will give thousands more Senior Homeowners access to what for many of them has become their only viable asset - the very home that they live in.

But timing is an interesting player in this mix. The conventional lending industry and it's supporting entities are reeling under the Sub-Prime meltdown. Then there is the housing market that is at very best "soft" in many parts of the country.

While this new bill will lower a portion of the fees and costs associted with the FHA HECM (the financed origination fee will drop from a maximum 2% of the loan amount to 1.5%) this will be quite minor compared to the largest contribution to the overall cost, the FHA Mortgage Insurance Premium that remains at 2% of the loan amount.  It is interesting that while the Government is touting this as a cost saving measure... they themselves still represent the largest part of the cost to the consumer.

What home owners and lenders alike a waiting for though is the FHA Countly Lending Limit to be increased to $417,000.00 for the entire continental United States. This represents a jump anywhere from 14% to more than double depending on the county.

This increase will allow hundreds of thousands more homes to qualify as well as give a tremendous opportunity for those already in a FHA HECM to refinace and take advantage of the gain in accessable equity. That is if their homes have appreciated, and held that appreciation.