The last two years have proven to be difficult for many borrowers over the age of 62 seeking to sell their homes. This is due to the real estate market slump and the repeat bailouts of major industries including the financial and auto-maker industries. The Obama Administration is working diligently to protect your interest as a mature borrower. The administration has submitted a request to Congress for the approval of a $798 million taxpayer subsidy, which is the first of its kind. According to the housing secretary Shaun Donovan, "business is sound and this investment will make money for the taxpayer in 2010."
For you this subsidy will allow you to continue to participate in the reverse mortgage program also known as the Home Equity Conversion Mortgage (HECM) program. The reverse mortgage program was designed for you to draw on the equity in your home, while you remain in your home, and receive payments over a period of time or all at once. The program has no income or credit requirements but is rather based on the current interest rate, the value of your home and the age of the youngest borrower in your home.
Though the real estate market as a whole is experiencing slow sales the move by the Obama administration is to curb the overall impact of the housing market on the reverse mortgage [http://www.reversemortgage360.com/articles/reverse-mortgage-taxpayer-subsidy/]
programs. The White House administration reported that the decline in house prices have adversely affected the projected credit performance of Home Equity Conversion Mortgages. As a result, the program has a positive subsidy rate. The Budget provides both fixed and variable appropriations of credit subsidy to support continuous operation of the program even if actual loan activity exceeds projections. The Budget projects insurance of $300 billion in single-family forward mortgages and $30 billion in Home Equity Conversion Mortgages with an additional $70 billion in commitment limitation available in case these amounts are exceeded during execution.
The reverse mortgage program is not similar to the current equity programs which allow you to draw the equity from your home all while making a monthly payment back to the lender. No. The reverse mortgage allows you to receive payments on your terms without having to make payments on the loan until you move from your home or you pass away.
The Obama Administration has created a budget for 2010 which addresses the housing market and the role of the Federal Housing Administration and the U.S. Department of Housing and Urban Development. The 2010 Budget continues to support the greatly expanded efforts of a reformed Federal Housing Administration (FHA) as it continues its modernization efforts. The Department continues to help stabilize our mortgage markets, and new legislation and economic conditions have made the FHA a major source of mortgage financing. The Budget includes $100 million for the Housing Counseling Assistance program, which is the only dedicated source of Federal funding for the full spectrum of housing counseling services.
For you this subsidy will allow you to continue to participate in the reverse mortgage program also known as the Home Equity Conversion Mortgage (HECM) program. The reverse mortgage program was designed for you to draw on the equity in your home, while you remain in your home, and receive payments over a period of time or all at once. The program has no income or credit requirements but is rather based on the current interest rate, the value of your home and the age of the youngest borrower in your home.
Though the real estate market as a whole is experiencing slow sales the move by the Obama administration is to curb the overall impact of the housing market on the reverse mortgage [http://www.reversemortgage360.com/articles/reverse-mortgage-taxpayer-subsidy/]
programs. The White House administration reported that the decline in house prices have adversely affected the projected credit performance of Home Equity Conversion Mortgages. As a result, the program has a positive subsidy rate. The Budget provides both fixed and variable appropriations of credit subsidy to support continuous operation of the program even if actual loan activity exceeds projections. The Budget projects insurance of $300 billion in single-family forward mortgages and $30 billion in Home Equity Conversion Mortgages with an additional $70 billion in commitment limitation available in case these amounts are exceeded during execution.
The reverse mortgage program is not similar to the current equity programs which allow you to draw the equity from your home all while making a monthly payment back to the lender. No. The reverse mortgage allows you to receive payments on your terms without having to make payments on the loan until you move from your home or you pass away.
The Obama Administration has created a budget for 2010 which addresses the housing market and the role of the Federal Housing Administration and the U.S. Department of Housing and Urban Development. The 2010 Budget continues to support the greatly expanded efforts of a reformed Federal Housing Administration (FHA) as it continues its modernization efforts. The Department continues to help stabilize our mortgage markets, and new legislation and economic conditions have made the FHA a major source of mortgage financing. The Budget includes $100 million for the Housing Counseling Assistance program, which is the only dedicated source of Federal funding for the full spectrum of housing counseling services.
Source...