New FHA loan limits. This also benefits seniors in real estate.
Effective January 1, 2004, FHA will insure single-family home mortgages up to $160,176 in low cost areas and up to $290,319 in high cost areas.
These increases will also benefit senior citizens who qualify for FHA-insured reverse mortgages. Reverse mortgages allow senior home owners (age 62 and older) to borrow against the value of their homes without selling them. Homeowners can select a lump-sum payment, monthly payments or a line of credit. A reverse mortgage requires no repayment on the loan as long as the owner lives in the home. When the senior home owner sells the home or dies, the reverse mortgage is repaid, with interest. A very interesting option for seniors.
For the full article on the FHA real estate loan limit increases go HERE.
For independent information on reverse real estate mortgages, go HERE.