Are you a senior in Pittsburgh, PA? Enroll in housing counseling and discuss a reverse mortgage

Allegheny County is the seat of Pittsburgh, Pennsylvania - and this area has one of the largest senior citizen populations in the nation, according to the U.S. Census. Home ownership can be an attractive option for seniors; however, many live on low or fixed incomes as a result of retirement, reduced work schedules, or meager Social Security benefits payments. At Advantage CCS, we recommend housing counseling to our seniors who are considering home ownership. In housing counseling, you might wish to discuss reverse mortgages. Why are these good financing options for senior citizens?

Reverse mortgages, housing counseling, and you

AARP.org has some important consumer information about reverse mortgages. The site states that reverse mortgages are available to seniors who are 62 years of age or older. The mortgage itself is an act of borrowing credit against a house; however, unlike a standard mortgage, the money does not have to be paid back as long as you're still alive and residing in your Pittsburgh, PA home.

In housing counseling, you and your counselor will discuss your income and how much you can afford to pay on a mortgage. However, reverse mortgages have no minimum income requirements. This is why they work so well for some seniors. Be aware however that when you choose a reverse mortgage  your equity decreases and your debt increases. If this concerns you, discuss it with your housing counselor before applying for a reverse mortgage.

When will a reverse mortgage work for you?

-You are over 62 years of age.

-You have limited income, but wish to own a home.

-You intend to stay in that home until the end of your life.

When should you not consider a reverse mortgage?

-You like to move around a lot.

-You want to build equity rather than depleting it.

-You have health problems or limitations that might make home maintenance and upkeep prohibitive.

You and your Advantage CCS housing counselor can also discuss how you'd like to receive the borrowed equity, and how you can manage it. AARP.org states that you can receive reverse mortgage payments in a lump sum; in regular monthly installments; as a line of credit -- or in any combination of those three options. If you wish to have the cash from a reverse mortgage forwarded to you, be sure to discuss with your housing counselor how this cash might fit in with your monthly money management plan.

Our credit counseling team wants to correct one popular rumor about debt: It does not live on after you die. FamilyResource.com states that unless your children or spouse co-sign a loan, a mortgage, or a credit card with you, they will not incur debts after your death. Our housing counseling team advises you NOT to co-sign a reverse mortgage with your spouse or children if you want to avoid having them inherit your debt. Call an Advantage CCS representative today to learn more about our housing counseling services. Happy house hunting, Pittsburgh seniors!