Seniors Will Benefit From the Economic Stimulus Plan
There are some housing-related items in President Obama’s economic stimulus plan, which can potentially help American seniors successfully tackle the tough economic times.
American seniors have been forced to re-evaluate their finances and retirement plans because of the current economic doldrums. Americans above 55 years of age are especially vulnerable to financial pressures and losses because of the bad economic conditions.
The economic stimulus package unveiled by the Obama administration recently is expected to address this issue, at least partially. Retirees on fixed incomes find that housing costs form a major portion of their daily or monthly expenditures.
In the new economic stimulus plan signed by President Obama, American seniors who get Social Security or Supplemental Security Income will get a one-time payment of $250. This is expected to benefit about 55 million people. The potential recipients for this money need not sign up for the receiving the payment; the payments will be received automatically by late May of 2009.
That $250 is free to be used for anything that senior wants it for. Census data has shown that one in four seniors spend 30% or more of their monthly incomes on housing expenses. So this $250 payment can bring some relief for those senior home owners.
Census data also shows that fortunately, more than 70% of home owners above the age of 65 own their homes. They too will be receiving this one-off payment.
The stimulus package has also raised the reverse mortgage loan limit to $625,500 from the previous limit of $417,000, through the year 2009. Reverse mortgages allow home owners to borrow the value of the equity of the home. The higher limit will allow qualified senior borrowers to get higher payments. The stimulus plan also provides for $4 billion for Public Housing Capital Fund. This fund provides money for public agencies that operate low-income public housing.
The other items in the economic stimulus plan that can indirectly help seniors are the items like the first-time home buyer tax credit is now up to $8,000.
Thus, American seniors considering reverse mortgages as an option to get more money during retirement, stand to benefit from President Obama’s economic stimulus plan.
