Reverse Purchase Home Mortgage Highlights:
- All Borrowers Must be 62 Years of Age, or Older
- Must occupy the home as your principle resident
- No credit, income or health requirements to qualify
- Social Security or Medicare benefits are not affected
- You keep the title and may sell your home at any time
- Make no mortgage payments as long as you reside in the home
Starting January 1, 2009, FHA will begin to insure reverse mortgage loans for purchases. What does this mean? Senior borrowers age 62 and over can now purchase a home using a reverse mortgage rather than a traditional forward mortgage. This is great news to seniors who have had a desire to purchase a new home but felt they could not either due to their credit, their income, they did not want to have to start making payments again at this stage in their lives or a myriad of other reasons.
What does this really mean for senior borrowers? We have heard many senior borrowers who loved their homes and never wanted to leave it. We have heard from almost as many who told us that they found their existing home just did not suit their needs any longer but they could not see any way of moving to a new home so they felt that they either had to remain in the home with which they no longer felt comfortable or their only other option was to sell it and rent an apartment somewhere and that option just was not very appealing to them.
The purchase reverse mortgage program allows borrowers to purchase a new home, they do not have to pay for the entire home with cash and they never have to make a mortgage payment for as long as they live in the property. There is no income or credit qualification (other than HUD's requirement that the borrower's must be able to maintain their home and pay the taxes and insurance and cannot be delinquent on federal obligations or currently in bankruptcy) and the Home Equity Conversion Mortgage (HECM or "HECK-um") for purchase can be used with all the same property types that the refinance HECM programs currently accommodate.
One thing that HUD did for seniors that will really help them in this market is that they are determining the down payment requirements solely on the appraised value, rather than the normal FHA method of the appraised value or the sales price, whichever is less. This may not sound like much of a concession at first, but stop and think about a property which must be sold quickly in this market which still appraises for a higher value.
Get Qualified Today! There is
NO COST or OBLIGATION!