Aging in place and reverse mortgages The Reverse Mortgage became a valuable and safe tool for Older Americans when the United States Congress authorized the Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA) to sponsor the Home Equity Conversion Mortgage (HECM) in 1989. Another program became available in 1996 when the Federal National Mortgage Association (FannieMae) created the Home Keeper. In addition Financial Freedom Senior Funding a subsidiary of Indy-Mac sponsored a private program for properties in excess of $500,000. These three (3) Reverse Mortgages offer the opportunity for virtually all Senior Citizens to utilize the equity in their homes to provide needed financial security. Since 1989, more than 119,000 seniors have obtained one of these mortgages Reverse mortgages and aging in place In Washington, most seniors would prefer to "age in place" the rest of their lives and enjoy the remaining years with family and friends close by, says John Kennedy, Reverse Mortgage Specialist and pioneer in developing reverse mortgages. "Our local culture of families caring for each other is a major reason for seniors wanting to stay in their homes," explains John. Recently, the National Council on Aging (www.ncoa.org) conducted a study to show how Reverse Mortgages can help seniors pay for long-term care needs for the home. "This is an important study that, for the first time, shows that elderly homeowners, many with chronic conditions, can use reverse mortgages to pay for care at home," said Jim Knickman, vice president for Research at the Robert Wood Johnson Foundation. "We hope that these findings will prompt new thinking into how the nation addresses the challenge of financing long-term care needs," Knickman says. According to Kennedy, in Washington most seniors own their own home and are literally sitting on hundreds of thousands, if not millions in equity. A reverse mortgage is one of the best options for being able to live the rest of their lives in the home that they may have raised their children in or perhaps have built an active community around. With so much wealth tied up in the home, the decisions that today's older homeowners make about this financial asset can significantly impact their decision on the quality of life as they age in place. In recent years, there has been a renewed interest in reverse mortgages to pay for home care services as well as to fix up the home or help out other family members. A reverse mortgage is wonderful for those who for whatever reason may want or need money; it does not affect Medicare or social security qualifications. Reverse mortgages are specialized loans that allow homeowners aged 62 and older the ability to convert a portion of their home equity into cash while still being able to live in their home for the rest of their lives without making a mortgage payment. Homeowners are able to age in place and withdraw their equity via a lump sum payout, monthly payments or any combination of the two, or simply leave the money is a line of credit that is just waiting for them at any time in the future, whether it may be 5 years or 20 years down the road. Kennedy, a reverse mortgage specialist says that even though a reverse mortgage may not be for everyone, he has helped many in Washington to enjoy his or her home, remain independent and be free from any financial worries. Initially, there are two key questions one should think about when considering a reverse mortgage, says Kennedy. First, if you want to stay in your home for the foreseeable future in other words "age in place." Secondly, if you had access to additional funds, would you be able to improve your quality of life or at least give yourself some peace of mind. Then a reverse mortgage may be for you. If you can answer, "yes" to both of these questions you probably should give him a call. - - John Kennedy can be reached by phone at (206) 935-9884 or e-mail at kennedyalki@comcast.net