If you are 62 years of age or older and have been considering downsizing, shortly you will be able to downsize without cleaning out the bank, or having to have a mortgage payment every month.  

As part of the Housing and Economic Recovery Act of 2008, Reverse Mortgage will now be acceptable for purchases.   The guidelines are unclear and a Mortgagee Letter from HUD (this is a letter that spells out the guidleines) is anticipated before the end of the year and possibly as early as September.  

What does this mean for  seniors?    Simply stated, you will now be able to purchase a new primary home without having to use all of the proceeds of your sale, or clean out your bank account and retirment funds to pay cash, or have to take out a mortgage with an expensive monthly payment.  

Many seniors have already found the benefits of reverse mortgages by utilizing them to stay in their family homes and rid themselves of the costly monthly mortgage payments, but for some taking care of that big old house with 3 flights of stairs is no longer an option.    This new financial vehicle will open the doors for these seniors to be able to purchase the new smaller home and maintain a respectable quality of life.  

For more information on these great new products stay tuned for more details, or contact me directly anytime.   Thanks again and may you enjoy retirement to it's fullest.