Purchasing With A Reverse Mortgage
For most seniors today, their home represents both their largest asset and their biggest monthly payment. Making the right decision as to how you can use the asset you have built in your home and manage the monthly expense of home ownership can be a significant factor in determining your financial security in retirement.
Many seniors love the home where they have lived and never want to leave, for them a standard reverse mortgage is an excellent option. Many others, however, find that their existing home no longer suits their needs, but don’t see any feasible way to move to a new home. Home and yard maintenance issues, multiple levels and staircases, and a layout that was more suitable to raising a family may create challenges for enjoying your home in retirement. Some seniors would like to keep their existing home and also purchase a second home in a warmer climate or closer to family but doing so would exhaust all their savings or impose a new expensive mortgage payment that might be difficult to afford over time.
Enter the reverse mortgage purchase loan. You can buy a new home without having to pay cash for the entire price of the home without making any mortgage payments for as long as you live in the home. This may allow you to buy a home closer to family or in a community where you would like to live during retirement and never have a mortgage payment. You may even be able to begin retirement earlier than you expected and still have a comfortable home in which to live.
What’s the catch? A purchase reverse mortgage functions in the same way as a reverse mortgage used to refinance an existing home. However, instead of using the equity in a home you own to qualify, you will need to have a sufficient down payment for the new home. This down payment can come from any acceptable source including proceeds from the sale of your current home, investments including 401-K or IRA accounts if appropriate, and even gift funds from a family member. In addition, if you are buying a home that appraises for more than you are paying for the home, you may be able to use the extra equity from the appraisal toward your down payment. This means you could buy a new home with even less money down.
What if I already own a home? A reverse mortgage can be used to purchase a home even if you already own a home. By purchasing using a reverse mortgage you may be able to sell your home and use part of it for the down payment while keeping some funds for other needs. If you owe money on your home, you can still qualify if you have enough equity from the sale of the home for the down payment or if you have other means to cover the down payment. This means you could buy a home that fits your current lifestyle and have more assets for other investments or expenses, while eliminating mortgage payments.
What kind of home can I purchase with a reverse mortgage? A reverse mortgage can be used to purchase any home that meets the minimum required standards. This means the home must be in generally good condition and not have any health or safety issues. Most single family homes and town-homes and many condominiums meet this requirement. Purchasing using a reverse mortgage allows you to buy a home in any area and find the property that will best suit
As with any important financial decision, you want to have all the facts before you choose the direction that will best suit your needs. Before you make a decision to sell your home or begin shopping for a new one, consult with your reverse mortgage adviser to get all the details necessary to purchase your new payment free home. Use our online calculator for information loan size qualification, or call for a freeno obligation quote or call us today toll free at 855-473-8377
Many seniors love the home where they have lived and never want to leave, for them a standard reverse mortgage is an excellent option. Many others, however, find that their existing home no longer suits their needs, but don’t see any feasible way to move to a new home. Home and yard maintenance issues, multiple levels and staircases, and a layout that was more suitable to raising a family may create challenges for enjoying your home in retirement. Some seniors would like to keep their existing home and also purchase a second home in a warmer climate or closer to family but doing so would exhaust all their savings or impose a new expensive mortgage payment that might be difficult to afford over time.
Enter the reverse mortgage purchase loan. You can buy a new home without having to pay cash for the entire price of the home without making any mortgage payments for as long as you live in the home. This may allow you to buy a home closer to family or in a community where you would like to live during retirement and never have a mortgage payment. You may even be able to begin retirement earlier than you expected and still have a comfortable home in which to live.
What’s the catch? A purchase reverse mortgage functions in the same way as a reverse mortgage used to refinance an existing home. However, instead of using the equity in a home you own to qualify, you will need to have a sufficient down payment for the new home. This down payment can come from any acceptable source including proceeds from the sale of your current home, investments including 401-K or IRA accounts if appropriate, and even gift funds from a family member. In addition, if you are buying a home that appraises for more than you are paying for the home, you may be able to use the extra equity from the appraisal toward your down payment. This means you could buy a new home with even less money down.
What if I already own a home? A reverse mortgage can be used to purchase a home even if you already own a home. By purchasing using a reverse mortgage you may be able to sell your home and use part of it for the down payment while keeping some funds for other needs. If you owe money on your home, you can still qualify if you have enough equity from the sale of the home for the down payment or if you have other means to cover the down payment. This means you could buy a home that fits your current lifestyle and have more assets for other investments or expenses, while eliminating mortgage payments.
What kind of home can I purchase with a reverse mortgage? A reverse mortgage can be used to purchase any home that meets the minimum required standards. This means the home must be in generally good condition and not have any health or safety issues. Most single family homes and town-homes and many condominiums meet this requirement. Purchasing using a reverse mortgage allows you to buy a home in any area and find the property that will best suit
As with any important financial decision, you want to have all the facts before you choose the direction that will best suit your needs. Before you make a decision to sell your home or begin shopping for a new one, consult with your reverse mortgage adviser to get all the details necessary to purchase your new payment free home. Use our online calculator for information loan size qualification, or call for a freeno obligation quote or call us today toll free at 855-473-8377
Quick Quote
