Reverse Mortgage - Purchase Another Home (Part 4)
Senior citizens who have pondered the possibility of a reverse mortgage now have a new benefit to consider; the purchase of a second home.
The Federal Housing Administration (FHA) learned of statistics that showed the number of senior aged homeowners selling their large home and taking the proceeds to purchase a smaller home. Some of these individuals were able to make enough profit from the sale of their first home to put some money in savings while still being able to purchase the smaller home.
But this created a problem in the form of closings costs. Sellers would pay some costs when selling their previous home and more costs with the new purchase. The Home Equity Conversion Mortgage allows these costs to be reduced.
Senior aged homeowners can obtain a reverse mortgage on their current property and use the loan to buy another home free and clear. This could allow the senior citizen to live in the new home and lease out the previous home. This type of scenario could greatly increase their income. The homeowner would receive the monthly reverse mortgage check as well as the lease check from their new tenant.
Conversely, the seniors could simply sell the old home after they have purchased the new home if they wished to pay off the reverse mortgage.
This new type of financing can be a real cost cutting measure to any family that has discovered the need to move into a smaller home. Check with us today and find out how this loan can be a benefit to your financial goals.
If you missed Part 1 - The Essential Information, Part 2 - The Payments or Part 3 - Is It The Same as a Home Equity Loan, be sure to check them out.
Visit our Reverse Mortgage page for additional program details.
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