little-known mortgage process is helping free up

hundreds of dollars of monthly cash for senior

citizens.

Dubbed

a "reverse mortgage," the process

provides an extra monthly stipend for seniors who

have a tight budget and could use a few more

dollars.

The

Federal Housing Administration program allows

seniors 62 and older to borrow against equity in

their homes and have it distributed as either a

lump sum, monthly payments or a line of credit.

The

best part of the loan is that seniors don't have

to repay it as long as they live in the home.

Seniors

who have tried the program have used the extra

income for everything from paying property taxes

to paying for medicine or just using it as

discretionary income.

Jeffrey

Moulton of Norwest Mortgage said the program is

proving to be extremely popular.

"The

majority of those who are seeking this program so

far have indicated that paying property taxes

each year is a major consideration to look into

the program," he said.

Here

are the most commonly asked questions about the

program:

� Am I qualified for a reverse

mortgage if I currently have an existing loan on

my home.

Yes,

but the existing loan must be paid off prior to

or at the settlement of the reverse mortgage.

Quite often the reverse mortgage is used to

refinance an existing loan.

My property is held

in a living trust. Do I qualify? Yes, but you

must be the primary trustee and qualified by age.

To avoid probate,

my children and I own the property in joint

tenancy. Do we qualify?

Yes,

if the children are age 62 and older and live in

the property. Otherwise, they would need to be

taken off title for you to participate.

Are the cash

advances considered income by the IRS?

No.

The cash advances are actually loan distributions

and are not considered income. The cash advances

are tax-free.

Are mobile homes

eligible?

No.

Unfortunately not, even if it is on a permanent

foundation.

Are there restrictions on

how I can use the money?

No.

Of course not. After all, it's your money.

Are

there restrictions on h ow is the loan repaid?

The

loan is due and payable when the borrowers no

longer occupy the property as their principal

residence or fail to comply with the loan

agreement.

The

loan agreement states that the borrower

understands it is his responsibility to maintain

the property and to pay the real estate taxes and

hazard insurance premiums.

The

loan must be repaid in one payment, either from

the sale of the home or through other resources.

There

is no requirement that the property be sold, only

that the loan is repaid.

For

information, check with your financial

institution or go to www.reversemortgages.net on the Internet.