The reverse Purchase has only been around for a year and half but is now starting to gain steam with the real estate community. There are seniors (62 and older in this case) that would love to take advantage of the excellent value but are timid due to adding a payment and do not think they can sell their existing home. Here is how one 75 years old senior took advantage of this program.
1. Purchasing a property (roughly 40% down)
2. Has no payment for the rest of his life on the mortgage debt. Is still responsible for taxes and insurance. Was able to buy a more suitable property than he originally looked at because he did not have to pay cash to alleviate the payment. He was able to purchase more of a home.
3. Was able to get more realistic with the sale price on his existing home. Once he felt the pressure was off as he has no payment on the new property he feels more comfortable getting aggressive with the exit property.
So, what was the result for the senior? He was able to get in the property he wanted and did not allow the market conditions to hold him back. He took advantage of a great purchase market and is moving on while many are waiting on a market that may not be coming for some time.
This product is allowing many seniors to move and not feel "stuck" as we hear so many say today. This program is really working for those who take the time to understand it. No minimum credit score requirements is another story, stay tuned.