Are you interested in purchasing a new property with a reverse mortgage? We have the answers you need to take the next steps in your retirement process. View the details below or call now to discuss your options.
Reverse Mortgage for Purchase
I would like to move, but I don’t think I can afford anything nice!
A reverse mortgage may be used to purchase a new home and have no mortgage* going forward. In addition, you can approximately double your buying power by using a reverse mortgage. For example, if you will receive $200,000 from the sale of your current home, you could purchase a new home for around $400,000 or more depending on your age. Please call for the details that will apply to your specific situation.
If you are planning to sell your current home, and purchase a new home, please call to see how much house you can “go shopping for.” We can help by speaking with your Realtor and providing a letter to make your purchase offer stronger.
The eligibility requirements are very much the same as for any other reverse mortgage.
- At least one borrower must be 62 or older.
- The new home must be your primary residence and you must move in within 60 days of the purchase.
- The new property must pass an FHA appraisal inspection.
- You must be able to demonstrate that you have sufficient funds to close the loan. Often this comes from the proceeds of the sale of your current home.
- HECM counseling is required and is about45-minutes, often over the phone.
- The seller cannot give any concessions or pay any fees other than the normal and customary fees in your area. Call us for more specific information.
Benefits of Using a Reverse Mortgage for Purchase
- You always own your new home; the lender never does.
- No monthly payments are required,* and the loan comes due when the last borrower or non-borrowing spouse leaves the home permanently.
- You may purchase a 1 – 4 unit property as long as you live in one of the units.
- We recommend that you get a Home Inspection to see if there are any issues to be aware of with the property.
- Depending on the type of Reverse Mortgage you use, you may be able to establish a guaranteed-growth line of credit which makes a nice retirement account/ financial safety net.
- You CAN buy new construction!
Other Things You Should Know:
- There is no three day right of rescission with any purchase whether using a reverse mortgage, or not.
- Seller concessions are not applicable to reverse mortgages. Have your Realtor contact us, and we can advise them on the specifics of the purchase contract.