Mortgage and Lending Instruments Designed for the Elderly

Abstract

This paper explores the elderly homeowner's need for maintenance/rehabilitation-of-dwelling loans and outlines potential mortgage instruments for which the elderly might qualify in order to obtain modest, modern homes. A delineation of lifestyle, income and psychological factors contributive to the housing-inadequacy of the nondestitute elderly, is presented. This is followed by a discussion of location change stimulated either by housing-dissatisfaction or a desire for family closeness and the resultant financial burden of mortgage payments, taxes, utilities, and assessments. The final section presents mortgage plans available through HUD to address the problems presented and recommendations concerning mortgage plan policy. Key concepts: -Mortgage -Elderly Homeowner -Reverse Annuity Mortgage -Housing-inadequacy -Housing-dissatisfaction -Adult Child Elderly Parent Interaction