Latest news with #OlderAmericans
CBS News
13 hours ago
- Business
- CBS News
What disqualifies you from getting a reverse mortgage?
For many older Americans, their home is more than a place to live. It's also their biggest financial asset. And, for those who need access to more income in retirement, tapping into that wealth can be a smart move, whether they need help covering medical bills, supplementing Social Security or simply want more financial peace of mind while living on a fixed income. That's part of why reverse mortgages, which allow homeowners 62 and older to convert home equity into cash without monthly mortgage payments, have become a popular choice among retirees. But while reverse mortgages are designed to provide an accessible borrowing option to aging households, they aren't available to everyone. In fact, a surprising number of applicants don't qualify. Part of the issue is that the reverse mortgage application process has grown increasingly rigorous over the last decade, so there are significant hurdles borrowers may face when applying. For example, borrowers now face mandatory financial assessments that are required to protect both lenders and borrowers from defaults, which can make it harder to qualify. Understanding those hurdles is critical if you're considering a reverse mortgage in retirement. You don't want to begin the process only to discover that your home or finances won't make the cut. So, what exactly can disqualify you from securing one of these loans, and what should you know before applying? Compare your top reverse mortgage loan options online now. While reverse mortgages can be a valuable tool, lenders must follow strict rules to protect both borrowers and the financial institutions backing the loans. These requirements mean that not every homeowner qualifies. Here are some of the most common disqualifying factors: While you must be at least 62 to qualify for a government-insured Home Equity Conversion Mortgage (HECM), the age requirement becomes tricky when spouses are involved. If your spouse is younger than 62, they can be included as a non-borrowing spouse, but this significantly reduces the loan amount you'll receive since calculations are based on the younger spouse's age. Some proprietary reverse mortgages do allow borrowers as young as 55, though, depending on the lender and state regulations. However, these private loans typically come with stricter credit and income requirements that can disqualify borrowers who would otherwise qualify for an HECM. The age factor also affects your borrowing power throughout the life of the loan. Leaving your home for extended periods, including long-term medical care, can trigger loan repayment requirements, making reverse mortgages unsuitable for seniors who may need nursing home care in the near future. Find out what reverse mortgage loan options you could qualify for here. You need at least 50% equity in your home to qualify, and your reverse mortgage proceeds must be sufficient to pay off any existing mortgage balance. This requirement trips up homeowners who've recently refinanced or taken out home equity loans, as well as those in areas where property values have declined. If your reverse mortgage can't cover your existing mortgage balance entirely, you'll need to bring cash to closing, a requirement that defeats the purpose for many cash-strapped seniors. Property type restrictions also eliminate many potential borrowers. After all, reverse mortgages only work for single-family homes, FHA-approved condos or two- to four-unit properties where you live in one unit. Vacation homes, investment properties and certain types of manufactured homes don't qualify, regardless of their value or your equity position. Your home must meet FHA property standards, and major structural issues, health hazards or neglected maintenance must be addressed before approval. This requirement often surprises longtime homeowners who have deferred maintenance or live in older properties. An FHA appraisal will identify required repairs, and unlike traditional mortgages, where cosmetic issues might slide, reverse mortgage standards are particularly strict about safety and habitability. Certain zoning restrictions can also disqualify properties, and unique or overly large properties may not meet HUD guidelines. Even seemingly minor issues like using your home for short-term rentals can disqualify you, as these are considered commercial uses that violate the primary residence requirement. While reverse mortgages are more forgiving than traditional loans when it comes to credit scores, severe financial events like unresolved bankruptcies, recent foreclosures or federal debt delinquencies can disqualify you. You cannot owe any federal debt, such as federal income taxes or federal student loans, though you can use reverse mortgage proceeds to pay off these debts. Lenders must also verify your ability to pay ongoing property-related expenses like taxes, insurance and maintenance. If your income or assets aren't sufficient to cover these costs, you'll be denied, even if you have substantial home equity. This financial assessment has become increasingly strict, too, with specific residual income requirements that vary by household size and geographic region. You must complete a counseling session with a HUD-approved reverse mortgage counseling agency, and failure to attend this mandatory session results in automatic disqualification. This isn't just a formality, either. During this session, counselors evaluate whether you understand the loan terms and may recommend against proceeding if they believe a reverse mortgage isn't in your best interest. Reverse mortgages can be a powerful financial tool for older homeowners looking to unlock equity without taking on new monthly payments. Qualifying isn't as simple as owning a home and being retired, though. Age restrictions, property requirements, financial obligations and credit history all play a role in determining whether you're eligible. If you're thinking about applying, it can help to get a clear picture of your financial health and your home's condition before meeting with a lender. Addressing potential issues in advance — such as paying down debt, catching up on taxes or handling necessary repairs — can make the process smoother and improve your chances of approval.
Fast Company
4 days ago
- Fast Company
Older Americans like using AI, but trust issues remain, survey shows
Artificial intelligence is a lively topic of conversation in schools and workplaces, which could lead you to believe that only younger people use it. However, older Americans are also using AI. This raises the questions of what they're doing with the technology and what they think of it. I'm a researcher who studies older age, disability, and technology use. I partnered with the University of Michigan's National Poll on Healthy Aging to survey nearly 3,000 Americans over the age of 50. We asked them whether and how they use AI and what concerns they have about using it. Of the older people we surveyed, 55% responded that they had used some type of AI technology that they can speak to, like Amazon's Alexa voice assistant, or type to, like OpenAI's ChatGPT chatbot. Voice assistants were overwhelmingly more popular than text chatbots: Half of them reported using a voice assistant within the past year, compared to one in four who used a chatbot. Popular, among some Independent living continues to be a major goal of older Americans as they either do not want to or are unable to afford to live in long-term care communities, and AI may be a tool to support this goal. Our findings show that older adults who use AI in their homes find it helpful for living independently and safely. They mostly used these technologies for entertainment or searching for information, but some of their responses show more creative uses, such as generating text, creating images, or planning vacations. Nearly one in three older adults reported using AI-powered home security devices, including doorbells, outdoor cameras, and alarm systems. Nearly all of those people—96%—felt safer using them. While there has been some concern about privacy when using cameras indoors to monitor older people, cameras aimed outdoors seem to provide a sense of security for those who may be aging in their homes alone or without family nearby. Of the 35% of older adults who reported using AI-powered home security systems, 96% said they were beneficial. However, when we dove into which older adults are using AI, we saw that demographics matter. Specifically, those in better health, with more education, and higher incomes were more likely to have used AI-powered voice assistants and home security devices in the past year. This pattern seems to follow adoption trends of other technologies such as smartphones. Trusting AI is tricky As more information about AI's accuracy emerges, so do questions about whether people can trust it. Our survey results show that older Americans are split on whether to trust content that was generated by AI: 54% said they trust AI, and 46% said they do not. People who trusted AI more were more likely to have used some type of AI technology within the past year. Further, AI-generated content can sometimes look correct but be inaccurate. Being able to identify incorrect information from AI is important for assessing whether and how to use AI-generated search results or chatbots. However, only half of the older people surveyed were confident that they could identify whether content from AI was incorrect. More educated users were more likely to say they felt confident they could spot inaccuracies. Conversely, older adults who reported lower levels of physical and mental health were less likely to trust AI-generated content. What to do? Together, these findings repeat a common cycle of technology adoption that is pervasive even among younger demographics, where more educated and healthy people are among the first to adopt and be aware of newer technologies. This raises questions about how best to reach all older people about the benefits and risks of AI. How can older people who are not AI users get support for learning more so that they can make informed decisions about whether to use it? How can institutions develop better training and awareness tools so that older people who trust AI avoid trusting it too much or inappropriately using AI to make important decisions without understanding the risks? Our survey results highlight potential starting points for developing AI literacy tools for older adults. Nine in ten older people wanted to know when information had been generated by AI. We are starting to see AI labels on search engine results, such as Google search's AI snippets. Michigan and other states have adopted policies for disclosing AI content in political ads, but these notices could be made more visible in other contexts, such as nonpolitical advertising and on social media. Further, nearly 80% of older people wanted to learn more about AI risks—where might it go wrong and what to do about it. Policymakers can focus on enforcing AI notices that signal content was generated by AI, particularly at a critical time when the U.S. is considering revising its AI policies to do just the opposite—removing language about risk, discrimination, and misinformation—based on a new executive order.
Yahoo
04-07-2025
- Business
- Yahoo
This Bill Will Have a Major Impact on Americans 50+: Here's What's in It
After much discussion amongst Congress members, the President Trump-backed 'Big Beautiful Bill' appears to be getting closer to becoming a law. With so many elements included in the legislation, it can be tough to keep up with all the potential changes that it could lead to. One group of Americans that may be particularly concerned? Older Americans, who are often on a fixed budget, and want to know what it may mean for their finances. Below you'll find information on how the Big Beautiful Bill could affect seniors, plus when these changes would take place. On May 22, 2025, the House of Representatives passed The One Big Beautiful Bill Act, also known as the Big Beautiful Bill. The more than 900-page-long piece of legislation covers everything from tax cuts to foreign policy. It has undergone several revisions since it was drafted earlier this year, but the main goals of the bill have remained the same. One of the objectives has been to transform U.S. economics. and reform the budget, which could have a widespread impact on the finances of many citizens. Older Americans in particular could be affected by many of the provisions in the legislation. Keep reading to learn more about what changes are likely in store. Medicaid is a public health insurance program that allows low-income Americans to get health coverage for free or at a lower cost. People above the age of 65 can qualify if they meet the income requirements. (Medicaid also can help individuals who are legally blind, have disabilities, are pregnant and have children). Under the 'Big Beautiful Bill,' nearly $1 trillion would be cut from the program, reports USA Today, and more than 11.8 million could lose coverage over the next decade. As part of the legislation, states would be required to do eligibility checks twice a year to ensure anyone covered under the program qualifies. This will also mean setting up a system to verify people's employment or exemption status. A work requirement would also be put in place before anyone can receive coverage. If you don't qualify for an exemption, like having a disability or being a caregiver, you must work at least 80 hours a month. (This applies to childless individuals or parents whose children are older than 13). Currently, Georgia is the only state to have a work requirement for Medicaid recipients. But the new bill would mean anyone considered 'able-bodied' (not certified as physically or mentally unfit for employment) has to work those hours to continue being covered under Medicaid. Another change that could impact Americans'American's finances: a revamping of student loan repayment plans and how deferment works, reports First, all income-based repayments would be eliminated, providing borrowers with only two options: Standard Repayment Plan. This option means people will be repaying back their loans via fixed monthly payments over a fixed 10-25-year period based on the amount borrowed. Repayment Assistance Plan. Like the income-based plans, borrowers would be expected to make payments based on their total adjusted gross income, ranging from 1 to 10 percent. Any unpaid interest that isn't covered by the monthly payment will be waived. Borrowers will also be required to make 30 years of payments (or 360 payments) under the second plan, which is an increase from the typical 20-25 years. Here are some other changes: The elimination of the Grad PLUS loan program (for students in grad school) The end of subsidized loans for undergraduates Parent PLUS loans would be capped at $65,000 and would be ineligible for repayment programs More semester hours are required to be eligible for Pell Grants Future and current borrowers would also see changes when it comes to repaying their loans during tough times. Under the Big Beautiful Bill, you would not be able to defer based on hardship or unemployment if your loan was disbursed after July 2026. However, borrowers with existing or newly defaulted loans would have the option to rehabilitate their loans twice instead of just once. This process helps you get out of default by making nine consecutive, on-time payments. One perk older Americans could see with the passage of the bill: enhanced deductions that mean a big bonus for Social Security beneficiaries. Americans aged 65 and older would be eligible for an additional deduction on Social Security income during the 2025-2028 tax years. A deduction lowers your taxable income before calculating what tax you owe. The House has proposed $4,000 per eligible American, while the Senate bill makes that amount a little higher at $6,000. Besides meeting the age requirement for eligibility, your adjusted gross income (AGI) would have to fall below the designated cap. This is $75,000 a year for single filers or a combined income of $150,000 for those who are married and filing taxes jointly. This would be available whether you claim the standard deduction or decide to itemize, allowing seniors who qualify to maximize their tax break. The Senate bill has also proposed investing more of the budget in affordable housing through the Low-Income Housing Tax Credit. This federal program provides incentives to those in the private sector to develop and rehabilitate housing. Developers who agree to rent a portion of their units to those on a fixed income get tax credits, while people on a budget are able to afford a place to live. That can also mean more money to support the Section 202 program, which provides non-profits with funding to create affordable housing for low-income individuals who are 62 and older. This often includes supportive services like meals, transportation and healthcare assistance to help seniors live independently. After passing in the House, the bill was sent to the Senate where it passed (after some modifications) on July 1, 2025. Now it has returned to the House for final approval. President Donald Trump has been pushing for congress to pass The Big Beautiful Bill by July 4, but it remains uncertain as to whether that will happen. If the bill does become a law, Americans won't see changes immediately taking place. For example, states would have until January 1, 2027 to begin the eligibility verification checks for Medicaid. The new student loan repayment plans also wouldn't go into effect until July 2026. Though the tax deduction would include the 2025 tax year, seniors won't get a chance to claim it until filing taxes next year. Further clarification on deadlines will likely be provided should the bill be signed by the President. Social Security Administration Email Is Prompting Recipients to Take Action Online: What to Know Your Credit Score Still Matters in Retirement—Here's How to Maximize and Protect It Reverse Mortgages: What Homeowners 62-Plus Should Know Before Choosing This Loan Option
