Using a reverse mortgage to purchase a home! New Haven, CT

Using a reverse mortgage to purchase a home!

This is a great forum to let everyone know that a reverse mortgage can be used to purchase a home. This also gives realtors the ability to open up additional lines of market opportunity. Prior to the introduction of the purchase program, realtors and reverse mortgage originators were like fire and water. Realtors are trying to sell a house, and reverse mortgage originators are trying to keep seniors in their house. Now we can all work together.

This is an opportunity for seniors that are looking to down size, move to a single level floor home, move into a condo, relocate to be closer to family, etc. The available funds are based the age of the youngest borrower and on the lesser of the appraised value or purchase price, in addition to the interest rate.

So by selling their current home they can use those funds to apply to their new home, and use the reverse mortgage for the balance. This way they get a brand new home (which must be their principal residence) to meet their needs with out a mortgage payment. And based on the cost of the home they can also potentially can have additional remaining funds for their own use.

The benefits are:

• FHA Insured Loans
• Non-recourse
• No monthly payments
• No income or credit qualifications
• Home owner always retains title

Eligibility

• Home owner must be at least 62
• Must be primary residence
  • No second homes or investment property
• Present home must be in name of client
• 1-4 unit homes (one unit must be occupied by borrower)
• Approved condos and town houses.

So here is a way that realtors and reverse mortgage originators can now work together harmoniously to meet the needs of senior clients with a viable alternative!!