Seniors will soon be able to take part in the Federal HousingAuthority's "Reverse Mortgage" program, realizing the intent behindthe November 1999 passage of Texas Proposition 2. The US Departmentof Housing and Urban Development has released revised documentsthat will let approved lenders start taking applications.

A reverse mortgage allows senior homeowners to borrow againstthe available equity in their home without the burden of paymentsuntil the borrowers no longer reside in the dwelling. The two mainfunding sources for the program are FHA and Fannie Mae, theprivately held corporation chartered by the US government.

The Reverse Mortgage Company of Atlanta, one of the firstcompanies in the nation to start offering the program in otherstates seven years ago, has been notifying Texas seniors about theprogram and the reason for legislation delays, according to AudraPickens, Regional Director.