VA Reverse Mortgage Bill Stalls
Representative Michael Michaud, a Democrat from Maine currently has a bill before the House Veterans’ Affairs Committee. This bill would allow for U.S. veterans to acquire home equity conversion mortgages, or reverse mortgages, from the Veterans Affairs Department.
The bill would allow veterans over the age of 62 to receive monthly payments based on their age and the amount of equity in their homes. Once the home is not the primary residence of the borrower or if the home is sold by the veterans or their survivors the loan would get paid back, with a fee.
Unfortunately for Rep. Michaud, his bill has met some stiff opposition from the Bush Administration. The Federal Housing Administration already offers reverse mortgages and is available to veterans.
Keith Pedigo, the loan guaranty service director for the VA, has actually said that the FHA may program might be better. While the reverse mortgage bill for veterans is similar to current legislation allowing the FHA to provide reverse mortgages there are some differences.
Typically only a percentage (25%) of the mortgage is guaranteed by the VA loan as opposed to the FHA program that insures the full loan.
chetthevet
December 16th, 2007 at 2:26 amThat is too bad. it would be really great to have that type of benefit directly for vets. Then we could stay in a va home loan incase we wanted to use our va ben. for things like streamline etc
jon
February 10th, 2008 at 8:49 pmI wish things weren’t so confusing. We need more education on these things.