Seniors face aging issues with their houses and condos. They must make decisions about what needs to be remodeled, and how to pay for it -- and for seniors that is usually more complicated than for people with full time jobs. Reverse mortgages have become available as one tool. But local and state programs also make loans available through affordable housing programs to help seniors remodel for energy efficiency, weatherization and major repairs such as roofing, plumbing and window replacement.
According to the AARP, the lowest cost reverse mortgages are public loans.
The least expensive
reverse mortgages
are the ones offered by state or local governments. But these "public
sector" loans generally can be used for only a specific purpose, like
home repairs. Many are only available to persons with low to moderate
incomes. But the low cost can make these loans very attractive.
Energy Efficiency and Weatherization
Remodeling
projects or home maintenance projects of significant sizes, such as
major plumbing upgrades, or energy efficient window replacement or a
new roof, can warrant using equity in your home. These major home
renovations can improve the quality of life for a senior at the same
time they reduce monthly energy bills and improve the value of the
home.
Deferred Payment Loans (DPLs)
Many local and some state government agencies offer "deferred
payment loans" (DPLs) for repairing or improving your home. This type
of reverse mortgage gives you a one-time, lump sum advance. No
repayment is required for as long as you live in your home.
Property Tax Deferral (PTD)
Some state and local government agencies offer "property tax
deferral" (PTD) loans. This type of public sector reverse mortgage
generally provides annual loan advances that can be used only to pay
your property taxes. No repayment is required for as long as you live
in your home.
According to a 2007 AARP study, some type of PTD program is available
in parts or all of the following states: Arizona, California, Colorado,
Florida, Georgia, Idaho, Illinois, Iowa, Maine, Maryland,
Massachusetts, Michigan, Minnesota, New Hampshire, North Dakota,
Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia,
Washington, Wisconsin, Wyoming, and the District of Columbia.
AARP
does not endorse any reverse mortgage lender or product -- so do your
homework and ask a trusted financal advisor for help in analyzing your
situation and the reverse mortgages available to you.
Read more at AARP about
Low-Cost Public Loans