Can I Really Purchase a Home and Have NO Mortgage Payment?

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A Home Equity Conversion Mortgage for Reverse Mortgage Purchase makes it possible.

An Reverse Purchase Mortgage can help you finance the ideal home for this time in your life—and the best part is, you’ll have no monthly mortgage payment.* You can get a home that’s right-sized for you, while preserving your savings—and the home will be in your name, just like a traditional mortgage.

How does an Reverse Purchase Mortgage work?

Here’s an example: imagine a married couple, both 71 years old, planning the next chapter of their lives—looking for a right-sized home with low maintenance and upgraded amenities. They can purchase the home for $250,000 with a down payment of about 45% to 55%, and live the life they imagined with no monthly mortgage payment required. As borrowers, they must continue to pay for homeowners insurance, property taxes, and home maintenance.

How do I qualify for an Reverse Purchase Mortgage?

You can qualify for an Reverse Purchase Mortgage if you are at least 62 years old and the new home will be your primary residence. Houses and most condos qualify. Your down payment must come from either the sale of a home or your other assets—not another loan.**

How can I learn more?

One simple phone call can help you decide if an Reverse Purchase Loan is right for you.

Call us today at 424 225 2167 for help. One of our mortgage professionals will help you get the best possible Reverse Mortgage loan solution for your situation. We’ll be with you every step of the process and not hand you off to someone else.

The Strategy of Reverse Mortgage Loans for Purchase

 Typically, senior citizens utilize the reverse mortgage loan to get money out of the equity of their house to help them with cash flow for their retirement. The “Reverse Mortgage” takes money out of the equity in the form of monthly payments which is paid to them as long as they live, and they get to keep the house in the bargain.

 There are certain criteria to overcome for a reverse mortgage, as it is a government sponsored program, but for the right situation, it can be a real help for seniors who are in tight financial straits after their retirement.

 Interestingly enough there is also a strategy for reverse mortgage loans for purchase of properties as well. The concept works in a similar way as getting a reverse mortgage for retirement, only in this instance it is used to purchase a new home.

It works in exactly the same way as a retirement reverse mortgage does, only instead of a home that the seniors are already living in, it is used to purchase a home that they are going to be living in. The combination of the reverse mortgage on the new home and the down payment will equal the purchase price of the new home.

 There are certain requirements that the purchaser must meet, just like any other mortgage, as well as requirements for the reverse mortgage. One big advantage in this process is that the determination of whether the borrower will be able to meet the terms of the loan can be determined before any other negotiations occur, thus it can be known that the loan amount is relatively secure at the outset.

 The following points lists some of the advantages of using reverse mortgage loans for purchasing a new home.

 – Credit requirements for this transaction are not as stringent as on regular mortgage loans, and net worth, employment and income factors are not even considered.

– The financial amount of funds available for the mortgage are based upon the age of the borrower, the home’s purchase price, and a current rate of interest.

– Usually the interest rate on reverse mortgage home purchases are more favorable than those rates on the open market for conventional mortgages.

– Once the reverse mortgage purchase loan is approved and is a done deal, the homeowners will not ever be required to make a monthly payment as long as they remain living in the home, keep up the taxes, and keep the insurance paid up on the home.

– The loan itself has no term and the reverse mortgage itself doesn’t end until the 150th birthday of the youngest borrower.

– The reverse mortgage loan is a non-recourse loan, meaning that homeowners and the heirs are not going to be held as liable on any loan balance that is more than the value of the home while the loan is being repaid. If a sale occurs, profits belong to the homeowners, or the heirs of the homeowners.

Hope you got to know the basics of reverse mortgage purchase California. Would you like to know more about reverse mortgage purchase CA? All you need is to give us a call.

We are here to enrich your knowledge about reverse mortgage purchase California. We will help you understand the benefits of choosing reverse mortgage purchase in California. Our mortgage professionals are highly friendly in behaviour and better informed about mortgages, including reverse mortgage purchase California. We will be patient whether reverse mortgage purchase in California is right for you after analysing your situation. Get in touch with us when you want to know more about reverse mortgage purchase in California.

Call us today at 424 225 2167 for help. One of our mortgage professionals will help you get the best possible Reverse Mortgage loan solution for your situation. We’ll be with you every step of the process and not hand you off to someone else.
*Borrower is responsible for property taxes, homeowners insurance, and property maintenance. A HECM is a home-secured debt payable upon default or a maturity event.
**Some restrictions apply. This material has not been reviewed, approved, or issued by HUD, FHA, or any government agency.