I’m sure you’ve heard about how a reverse mortgage can turn the equity in your home into tax free cash, all the while not having to pay the mortgage. However did you know that you can also use a reverse mortgage to purchase a home with no credit score requirements or income verification? That’s right recently Congress added to the FHA reverse mortgage program that gives you the ability to purchase a home.
No all states offer this however but here in Oregon you can use the reverse mortgage purchase option. I’ve helped people through out the state purchase a home with this great program. I am your Oregon reverse mortgage purchase loan expert. There are similar requirements to a traditional reverse mortgage where you have to be at least 62 years of age and you have to be an owner of a home. What happens with a reverse mortgage for purchase is that it uses the equity from the sold home so you don’t have to make mortgage payments. Keep in mind just like the any home loan you still have to pay the homeowner’s insurance and any real estate taxes.
A lot of people when they retire have different needs for the residence. Some people don’t need as a big of a home, or maybe they want to move into a single story home to not have to walk up stairs. Others want to be closer to family and friends. With the reverse mortgage purchase option that is now possible without making a single mortgage payment.
To qualify for a reverse mortgage for purchase is very similar to a traditional home loan where there is a down payment. The difference here is that unlike a traditional home loan were it’s based off the purchase price, the minimum down payment with a reverse mortgage purchase will be based on a factor of your age, interest rates, and the lesser of the home’s appraised value, purchase price, or FHA-imposed national lending limit. There are similar fees with appraisals, inspections, contingencies, documents, and closing costs that you’d find with traditional home loans. However remember you don’t need income verification and meet any credit score requirements with the reverse mortgage purchase.
If this sounds like something that would be a solution to your retirement goals, then contact me. I’ll give you a custom quote on exactly what it would cost you out of pocket and how much of new home you could afford with no mortgage payments.