Home Lending and Mortgage Refinance Services By Company Name, Mortgage Lender
Home Lending and Mortgage Refinance Services By Company Name, Mortgage Lender
Home Lending and Mortgage Refinance Services By Company Name, Mortgage Lender


Reverse mortgage for disabled

The American Homeownership and Economic Opportunity Act of 2000 was enacted to ensure that nearly every segment of the society and every citizen in America has access to habitable living conditions.  Housing was one such condition, and in fact, occupies a center stage in the Act. 

Title VIII reads “Housing for Elderly and Disabled Families and is to be cited as the Affordable Housing for seniors and Families Act” as provided for under Section 801.  The Secretary for Housing and Urban Development (HUD) has been given powers to issue any regulations in regard to housing and access to loans by disabled people.

Other reverse mortgage laws

The Federal Housing Act (FHA) provides that there shall be no housing discrimination based on race, disability, sex, national origin color and religion.  These provisions are captured in many other pieces of legislation, both state and federal.  The Housing and Urban Development authorities have centers that will receive any complaints against lenders who discriminate against people with disabilities.

It cab be noted fro the above that the law has tried to facilitate easy access of loans by senior and disabled citizens in the United States of America.  There are pressure groups that are trying to ensure legislation is even bettered.

New Horizons Un-Limited Inc (www.new-horizons.org) has actively aired the views of many some of whom said

“Each community and each state in the United States has unique opportunities and barriers for finding accessible, available and affordable housing for people with disabilities. Many states and communities are forming coalitions that are committed to helping people with disabilities become homeowners. Housing coalitions have broad-based memberships, leaders in lending, housing and the disability community, knowledge of the housing system and resources and access to these state and local resources to alleviate some of the financial burden of buying a home. They provide housing counseling to prepare a person with disability to become a homeowner”.

The disabled and reverse mortgages

People with disabilities may not have access to reverse mortgages since they do not meet the conditions set which include being 62 years old and above and some may not be owning homes anyway.

However, families with people with disabilities, may, under the American Homeownership and Economic Opportunity Act of 2000, approach a public housing agency which may in place of providing monthly assistance payments give them housing. This can be in the form of a one off grant to be used only as a contribution toward the down payment required in connection with the purchase of a dwelling for the year.  The subsequent years are also catered for.

This grant as provided for in the Act will not exceed the amount equal to the sum of the assistance payments that can be made during the initial year.  The purchase of a dwelling house will include that under a lease purchase agreement, must be occupied by the disabled family and must be owned by one or more members of the family.
Unlike reverse mortgages, these loans require income and participation in a homeownership and housing counseling program.


  1. American Homeownership and Economic Opportunities Act of 2000
  2. http://www.govtrack.us/congress/bill.xpd?bill=h106-1776
  3. http://www.mywire.com/pubs/USATODAY/2008/07/28/7068870?extID=10037&oliID=229
  4. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=621324
  5. http://www.hud.gov/offices/fheo/progdesc/title8.cfm#a
  6. http://www.new-horizons.org/gdbahf.html
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