Lately, we have been talking to more and more people who are interested in learning more about the FHA Reverse Mortgage program.
With more people turning 62 every day, the number of people who are getting a reverse mortgage is expected to increase substantially over the coming years. What are the top 10 reasons that seniors get a reverse mortgage? According to AARP:
Top 10 Reasons Seniors Get A Reverse Mortgage
1. Pay off mortgage (20%)
2. Home repairs/improvements (18%)
3. Improve quality of life (14%)
4. Everyday expenses (10%)
5. Emergencies/unexpected (9%)
6. Pay off non-mortgage debts
7. Health or disability (5%)
8. Property taxes/insurance (5%)
9. Financial help to family (2%)
10. Investments, annuities, or long-term care insurance (1%)
Maybe it is because the baby boomers are starting to enter their retirement years, maybe it is because FHA is doing a better job of marketing the FHA reverse mortgage program to seniors, I don’t know… but according to the latest statistics from National Reverse Mortgage Lenders Association, as of June 2008, FHA-approved Mortgage Lenders have originated Reverse Mortgages for 73,875 for homeowners age 62 and older. In the month of October, the total number of people who got an FHA-insured reverse mortgage was up 6.6% from September to 10,121.
Clearly, the FHA-insured reverse mortgage program is growing as America’s demographics shift toward their “golden years”.