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New Government Legislation Helps Reverse Mortgages Fill the Void Left by the Credit Crunch
Seniors Can Now Purchase a Home Independent of Credit or Income Requirements With a Reverse Mortgage; Golden Gateway Financial Launches Reverse Mortgage for Purchase Calculator
| Source: Golden Gateway Financial
OAKLAND, CA--(Marketwire - January 21, 2009) - New government housing rules for 2009 include a
number of changes to reverse mortgage regulations. One of the more
compelling changes for older Americans is the ability to now use a reverse
mortgage for purchase, which is the right to purchase a home and use a
reverse mortgage to pay for a portion of the purchase price. This change
will help seniors save time and money while avoiding the challenges
associated with securing a forward mortgage in today's worsening economic
climate.
Reverse mortgages offer a number of advantages over traditional forward
mortgage products for those 62-years or older that are considering
purchasing a home. Borrowers purchasing with a reverse mortgage are not
subject to income or credit thresholds; the only requirements are that they
live in the home as their primary residence, maintain it properly and pay
all applicable taxes. Plus, seniors do not make monthly loan payments when
using a reverse mortgage to acquire a new home. This makes a reverse
mortgage for purchase an attractive way to downsize during retirement or
make a long-planned move to a new location.
"This legislation provides seniors with an incredibly powerful tool because
it simplifies two transactions into one and allows them to move into a new
home without the burden of monthly payments," said Eric Bachman, founder
and CEO of Golden Gateway Financial. "Even borrowers with impressive credit
and income are finding it hard to secure a forward mortgage and take
advantage of the current real estate market. Using a reverse mortgage will
also help seniors stay liquid when downsizing."
In order to help older homeowners better understand and take advantage of
this new program, online senior financial resource Golden Gateway Financial
today launched a Web-based reverse mortgage for purchase tool called the Downsizing Calculator. This calculator will help borrowers
quickly identify whether this program is right for them and how much money
they are eligible to secure. It joins the company's lineup of award-winning
tools, including its Life
Settlement Calculator, Budget
Reality Check, and the original Reverse
Mortgage Calculator that won accolades from The Wall Street Journal and
Kiplinger's.
According to the new U.S. Department of Housing and Urban Development (HUD)
regulations, a borrower can now purchase a new home and secure a reverse
mortgage on it in the same transaction by applying the reverse mortgage
payout towards the purchase price of the home. A borrower can then pay any
difference in the purchase price from the proceeds of the sale of their
current home or any other source of available funds.
"It used to be that seniors had to find a way to either afford to stay in
their home or to pay to downsize," continued Bachman. "Now, a reverse
mortgage could be the right choice for both of those scenarios."
Based on simple inputs such as zip code, home value and a borrower's age,
the Golden Gateway Financial Downsizing Calculator can provide borrowers
with a personalized look at the loans available to them and how these funds
could be applied towards purchasing a new home. The calculator also
provides the basic details of each available reverse mortgage loan,
including available credit, value of home in 10 years and cash payouts over
time.
For more information about reverse mortgages, including information about
HUD rule changes, or to access Golden Gateway Financial's industry-leading
suite of online retirement assessment tools and resources, please visit
http://www.goldengateway.com.
About Golden Gateway Financial
Golden Gateway Financial (www.goldengateway.com), located in Oakland,
California, is a comprehensive resource for senior citizens, baby boomers
and soon-to-be retirees to assess their financial health at retirement.
Through a unique set of online tools and clear and unbiased communication,
the company helps individuals address "The Great American Retirement
Dilemma." The tools enable users to better assess the security of their
nest egg and to make intelligent choices to fully enjoy what should be the
best years of their lives. The company also operates the industry's
premiere reverse mortgage service with a proprietary reverse mortgage
calculator and a team of trained counselors to help seniors better
understand the product, evaluate whether it is right for them, and identify
their ideal lending partner.