Use a Reverse Mortgage to Purchase a New Home

Retirees and older homeowners who are looking to downsize or to purchase a new home in retirement can look into doing a reverse mortgage purchase. While not as well known as a reverse mortgages are, it offers seniors the opportunity to buy a new home, while receiving their reverse mortgage benefits. This is great for those who want to downsize their home to fit their needs, or to move closer to friends and/or family members.

When applying for a reverse mortgage purchase, borrowers must abide by similar qualifications to a reverse mortgage:

• Borrower must be at least 62 years old
• Borrower(s) must live in the new home as their primary residence.
• Home must meet by FHA standards
• Borrowers must make a down payment on the home that is calculated based on the age of the youngest borrower, the appraised value of the home and the expected interest rate.

With a reverse mortgage purchase, the home is paid for from the loan proceeds from a reverse mortgage, and the borrowers do not have to worry about making monthly payments to the lender. Another benefit is that the borrowers are allowed to choose whatever home they want, as long as it meets FHA standards and they are able to live in it indefinitely. However, like a regular reverse mortgage, the reverse mortgage purchase has stipulations that the borrowers must abide by to avoid going into repayment status including:

• The borrower must continue to live in the new home as their primary residence.
• The borrower must make payments on home insurance and property taxes.
• The borrowers must maintain upkeep on their home.

Using a reverse mortgage purchase is available to help seniors and retirees find the new home of their dreams to match their needs.

If you are looking for an alternative or to downsize your current home, and you are over the age of 62 – a reverse mortgage purchase may be the opportunity you are looking for. To learn more about reverse mortgages and the reverse mortgage purchase program, contact a Senior Advisor at 1-888-808-8486 today!

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