Can you really purchase a home with a Reverse Mortgage or HECM? Answer: Assuming you qualify, the answer is YES.
What and who qualifies?
Seniors 62 or over who meet the guidelines. Most seniors I have worked with have met guidelines. When we talk, I can go over this with you in more detail.
Why would anyone want to buy a home with a reverse mortgage?
Well, there are many reasons. However, the one I see the most is the preservation of cash. Most seniors are not “cash rich” so preserving their cash is often a good idea. See the example below.
Recently we helped a couple buy a home with a reverse mortgage.The home price was 148,000. They needed only about $79,000 including closing costs to purchase the home. This preserved $69,000 of their cash.They can now live in the home and make NO principal and interest payments for as long as they pay all applicable taxes, insurance, and homeowners dues.
How much cash will I need to own the home I want?
Call me and I’ll be happy to talk it over. There is NEVER any pressure and our goal is simply to help you understand the product.
Disclosure: Encompass Mortgage Services, Inc. NMLS 1614463 MBR2272
Loan approval is not guaranteed and is subject to lender review of information. Encompass Mortgage Services, Inc. is an equal opportunity mortgage broker. Encompass Mortgage Services, Inc. is approved to originate VA and FHA loans and has the ability to broker such loans to VA/FHA approved lenders. Encompass Mortgage Services, Inc. is not acting on behalf or at the direction of HUD/FHA or the VA. Reverse Mortgage Specific Disclosure: The loan is repaid when the last borrower leaves the home or refinances the home or passes away. When the home is sold or refinanced the proceeds pay back the loan, accrued interest, and mortgage insurance All of the remaining equity goes to the borrower or their heirs. As with any home-secured debt, the homeowner remains responsible for property taxes, homeowners insurance, HOA dues and property maintenance. An under-age spouse is not a borrower and is not on title. Their right to remain in the property for life is dependent on meeting all conditions of the HECM program including continued payment of property taxes and homeowners insurance and maintenance of the property. Available tenure payments or lines of credit extended to the borrower will cease upon their demise and will not be available to the non-borrowing spouse. Tom Russo – Licensed Mortgage Loan Originator NMLS ID 352457
For the National Mortgage Licensing Consumer access, click here.