Consider Alternatives to Reverse Mortgages

Reverse mortgages are popular with senior citizens looking to supplement their incomes. Reverse loans appeal to many people because the proceeds can be used for any purpose, including health care costs, home repairs, or paying off debt. However, anyone considering one of these loans should check out alternatives to borrowing money.

Local Help for Seniors

Depending upon where you live, some of those alternatives may include the following.

1. School property tax credits for seniors: You usually have to be 65 and up to qualify. There may be income restrictions so check with the tax authority in your city or state.
2. Reductions in property taxes are available to seniors in some areas.
3. Get free help from a housing counselor if you are facing foreclosure. Visit FindaForeclosureCounselor.org to locate help to stay in your home. Keep in mind that if you decide to apply for a Home Equity Conversion Mortgage (HECM), you must receive counseling from a HUD-approved agency authorized to discuss reverse loans.
4. For help with home repairs, check housing and development agencies in your area.

Request Information from Agencies

There may be other programs available in your area. If you aren’t sure where to turn for help, you state’s department of aging should be able to direct you to the right agencies. Also check for programs throughout the country at Eldercare.gov. You can search for resources by zip code, city, or county.

Pros and Cons of Reverse Mortgages

It’s important to take advantage of programs in place for seniors that you may qualify for before turning to a reverse loan. Reverse home mortgages have helped many seniors enjoy a more comfortable retirement. But they should not be the first choice for improving your financial situation. Compare quotes from several reverse mortgage lenders to find out how much you could borrow and what kinds of fees are involved.

This entry was posted on Wednesday, April 21st, 2010 at 9:12 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.