Years ago, the term Don't Borrow Trouble was pioneered in Boston by Mayor Thomas M. Menino and the Massachusetts Community and Banking Council, and used by Freddie Mac, Fannie Mae, and several banking and lending associations. During the days of easy credit the phrase was meant as a warning for homeowners to be careful not to get in over their heads. In retrospect, considering the carnage from the bursting housing bubble, more people should have heeded that advice.

As a full service mortgage bank that offers FHA Reverse Mortgage Loans, unfortunately we meet too many people that have borrowed money during better times who now find themselves struggling to make ends meet. The payment on a mortgage may seem manageable when both husband and wife are in their 50's or early 60's and working, but that same payment can become burdensome when one spouse retires, is laid off, or becomes ill.

FHA begin insuring Reverse Mortgage loans in 1989 specifically to help senior homeowners who have equity in their homes but struggle with cash flow or liquidity. Surprising to those unfamiliar with the program is the fact that well over half the FHA mortgage loans originated today are being used to pay off an existing mortgage loan. Obtaining a Reverse Mortgage loan doesn't mean the homeowner no longer has any housing expense; there are still property taxes, homeowner's insurance, and maintenance costs that must be budgeted.

We should all be fortunate enough to not borrow trouble, but if you find that advice to be too little, too late, and eliminating your mortgage payment and/or getting tax-free cash can make a significant difference in your financial life, contact a reputable lender and see if a FHA Reverse Mortgage loan could be right for you.