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How Can a Reverse Mortgage Purchase Benefit Retirees?

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Are you a Senior or a Retiree over 62 years old  looking for a new home to live out the rest of your retirement in? Imagine living in your retirement dream home without having making monthly payments to the lender.  A Reverse Mortgage Purchase allows seniors and retirees that opportunity to live out the rest of their retirement in a new home.

A HECM Purchase Can Benefit Seniors

A Reverse Mortgage Purchase has many advantages for retirees and those who are over 62 looking for a new primary residence.

1. No mortgage payments

Similar to the the reverse mortgage program, with a reverse mortgage purchase, borrowers are not required to make monthly payments to the lender. This opens up for more income for the borrower, while having the advantage of living on a new home. However, borrowers should be aware of the terms of the loan are and what can cause it to go into repayment status, including:

  • Borrowers must continue to live on the property as their primary residence.

  • Borrowers must continue to make payments on property taxes and insurance.

  • Borrowers are responsible for the maintenance on their home.

2. It’s easy to qualify for a reverse mortgage purchase.

A reverse mortgage purchase can be easy to qualify for.

  • Borrowers must be at least 62 years old.

  • Borrowers must move into the new home within 60 days of closing.

  • The home must meet FHA standards.

  • A down payment must be made. It is calculated based on the age of the youngest borrower, the lowest amount of the sales price of the home, the appraised value of the home and the expected interest rate.

3. You get to choose the home that you want.

A reverse mortgage purchase allows the borrower(s) the opportunity to pick out the home that they choose. Whether they are opting for a smaller home, a home with their dream kitchen, or a home in a neighborhood near their grandchildren – a reverse mortgage purchase can make that happen. As previously stated, a home bought with the reverse mortgage purchase must meet FHA standards including:

  • Must be a single-family residence

  • 2-4 unit home with one unit occupied by the borrower

  • HUD-approved condominium project

  • Manufactured home that meets FHA requirements

4. The home is yours to live in indefinitely.

The home that you purchase with the Reverse Mortgage Purchase program is your house and not the bank’s, which means that you do not have to worry about the bank taking away your home and you are able to live on the property indefinitely, as long as you continue to meet the terms of the loan.

If you are interested in purchasing a new primary residence using a Reverse Mortgage Purchase, you can speak with a Senior Advisor today at 1-888-QUALIFY.
Image courtesy of [Danilo Rizzuti] / FreeDigitalPhotos.net

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