National Reverse-Mortgage Loan Limit Passed
One of the biggest problems with reverse mortgages is that this popular program does not go far enough in extending seniors the funds they need. A ruling by the U.S. House of Representatives last month has now changed the scenario by taking steps to eliminate the geographical barrier by passing the Expanding American Homeownership Act of 2006, which would create a single national loan limit for the HECM program equal to the conforming Freddie Mac loan limit of $417,000 for 2006. Mortgage101.com reports:
Raising the local loan ceilings for senior borrowers would be well received. Two privately funded national studies showed participants were frustrated with the inability to fully tap their large and growing equity. Respondents noted their increasing property values and living expenses, as well as their difficulty in making ends meet with the current HECM loan limits.
Read more:House passes national reverse-mortgage loan limit
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