A lot of information goes around about the Reverse Mortgage that is the tool many senior homeowner’s choose to use to help bridge the gap between their retirement benefits and their everyday expenses, but Southern Oregon Seniors, did you know you could use a Reverse Mortgage to PURCHASE a home? The general terms are the same as when you already own a home and take out a Reverse Mortgage, aka “Home Equity Conversion Mortgage” or “H.E.C.M.”.
Some general program details:
-You must be 62+ years old
-You never have to make monthly payments on the amount you borrow
-Credit history and income do not matter. The amount of money available to you is based on your home’s appraised value and/or the FHA loan limit (currently $625,500 nationwide) and your age
-Money may be disbursed to the homeowner in a lump sum, through monthly payments or accessed through a home equity line of credit.
-This is a non-recourse loan, meaning the homeowner(s) or heirs can never owe more than the home is worth
-You must reside in the home more than 50% of the year, which will be checked annually
-You must pay your property taxes and homeowner’s insurance, and maintain upkeep on the home.
-When the day comes you no longer live in the home, you or your heirs have time to make arrangements to refinance or sell the home and payoff the Reverse Mortgage
So, if you have sold a home and are purchasing another, you might want to consider using a Reverse Purchase Mortgage, which might work something like this:
Buyer is 65 years old, purchasing a home for $300,000 and is considering paying cash for it. You cover your down payment and closing costs, financing the rest with the Reverse Purchase Mortgage – A HUD FHA insured home loan that has no monthly payments – leaving almost $175,000, with which you may supplement retirement benefits, earn interest, save for a Rainy Day.
Some general program details:
-You must be 62+ years old
-You never have to make monthly payments on the amount you borrow
-Credit history and income do not matter. The amount of money available to you is based on your home’s appraised value and/or the FHA loan limit (currently $625,500 nationwide) and your age
-Money may be disbursed to the homeowner in a lump sum, through monthly payments or accessed through a home equity line of credit.
-This is a non-recourse loan, meaning the homeowner(s) or heirs can never owe more than the home is worth
-You must reside in the home more than 50% of the year, which will be checked annually
-You must pay your property taxes and homeowner’s insurance, and maintain upkeep on the home.
-When the day comes you no longer live in the home, you or your heirs have time to make arrangements to refinance or sell the home and payoff the Reverse Mortgage
So, if you have sold a home and are purchasing another, you might want to consider using a Reverse Purchase Mortgage, which might work something like this:
Buyer is 65 years old, purchasing a home for $300,000 and is considering paying cash for it. You cover your down payment and closing costs, financing the rest with the Reverse Purchase Mortgage – A HUD FHA insured home loan that has no monthly payments – leaving almost $175,000, with which you may supplement retirement benefits, earn interest, save for a Rainy Day.
Sound like the solution you and your family have been looking for? Call or e-mail for more details.
See you at the closing table!
See you at the closing table!
Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com
