Seniors Can Buy a House Using a Reverse Mortgage
Using a reverse mortgage to help seniors buy a house works exactly the same way a reverse mortgage works when you are refinancing a home in which you currently live. The difference is that you are doing the reverse mortgage on the home you are purchasing, not on the home you are selling. The combination of your down payment, and the reverse mortgage on your new home, will equal the purchase price.
How Seniors Can Take Advantage of Buying a Home with HECM (FHA-Insured Reverse Mortgage)
A reverse mortgage purchase offers many advantages to seniors who want to buy a house. The following unique guidelines will outline how seniors can buy a home with an HECM (most commonly known as a “reverse mortgage”) when they may not have qualified under the guidelines for conventional loan programs.
Just like any other mortgage program, there are specific requirements that must be met when seniors want to buy a home with an HECM loan. The difference with a reverse mortgage purchase is that determining if the borrower will meet these requirements can usually be determined prior to loan contract; and therefore all parties can enter the buy-sell process knowing that it is unlikely that the loan will fall through in the eleventh-hour.