Recently in Mortgages & Reverse Mortgages Category

In California cities are putting out bonds and using these bonds to provide loans to commercial property owners that they can use to retrofit and upgrade their buildings.

These are called "Energy Efficiency Financing Districts" and are a relatively new business model for funding green housing and buildings that can create more sustainable communities.

• The County of Sonoma (northern California) was the first county government to create a $100 million program exclusively for the Energy Efficiency Financing District program.

  Other municipalities that have Energy Efficiency Financing Districts in progress include:

• San Francisco
• Berkeley
• City of Palm Desert
• San Diego

California's AB 811 program, which was approved in July 2008, was designed to allow property owners to finance the installation of renewable energy systems and have the financing incorporated into their property tax payment. This state bill is making it possible for cities to create these new financing programs for energy efficiency and renewable energy projects.

According to the AARP, the lowest cost reverse mortgages are public loans.

The least expensive reverse mortgages are the ones offered by state or local governments. But these "public sector" loans generally can be used for only a specific purpose, like home repairs. Many are only available to persons with low to moderate incomes. But the low cost can make these loans very attractive.

Energy Efficiency and Weatherization

Remodeling projects or home maintenance projects of significant sizes, such as major plumbing upgrades, or energy efficient window replacement or a new roof, can warrant using equity in your home.   These major home renovations can improve the quality of life for a senior at the same time they reduce monthly energy bills and improve the value of the home. 

Deferred Payment Loans (DPLs)

Many local and some state government agencies offer "deferred payment loans" (DPLs) for repairing or improving your home. This type of reverse mortgage gives you a one-time, lump sum advance. No repayment is required for as long as you live in your home.

Property Tax Deferral (PTD)

Some state and local government agencies offer "property tax deferral" (PTD) loans. This type of public sector reverse mortgage generally provides annual loan advances that can be used only to pay your property taxes. No repayment is required for as long as you live in your home.

According to a 2007 AARP study, some type of PTD program is available in parts or all of the following states: Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, North Dakota, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming, and the District of Columbia.

AARP does not endorse any reverse mortgage lender or product -- so do your homework and ask a trusted financal advisor for help in analyzing your situation and the reverse mortgages available to you.

Read more at AARP about Low-Cost Public Loans