There is a program in Imperial Beach, California which may reduce the need for some seniors to get a reverse mortgage loan. The most common reason that seniors get a reverse home mortgage is because they need the money to be able to stay in their homes. Their homes may also be in need of repairs which can't be afforded on the senior's fixed income. The new plan kills two birds with one stone by offering money to home owners who are willing to make energy-efficient changes to their homes but requiring them to remain in the home for at least fifteen years after the money has been provided.
Seniors who want to make improvements to their home can benefit from this not only because this is debt-free money for those improvements but also because energy-saving and water-saving home improvements also cause the home to cost less to the home owner in terms of ongoing bills. This is particularly great for seniors living on a fixed income.
The senior is going to benefit from this only if he or she planned to remain in the home for a long period of time anyway. Since the majority of people seeking out reverse mortgage loans are people who plan to stay in their homes, this shouldn't be a serious problem. This could be one beneficial alternative for seniors living in Southern California.
Question of the Day: Should more cities make incentive plans like this to replace the need for so many reverse mortgages?
