April 25th, 2010 12:23 PM 
Most people today know something about a traditional reverse mortgage but have never heard of a reverse mortgage for purchase. This innovative product could be in certain situations a good solution for a senior that would like to downsize or do a parallel move.
The reverse mortgage for purchase allows a senior to purchase a primary residence by putting a certain percentage of the sales price as a down payment, usually between 40 and 50 percent, and having the reverse mortgage for purchase pay off the balance.
The advantage of this type of mortgage is that it could allow the senior to get into a new property without sinking all of the equity from the old home into the deal. Once they closed on the new home it would be the same as a traditional reverse mortgage. There would be no house payment as long as they lived in the home. And each month the interest would accrue against the equity.
Below are some guidelines that apply to a reverse mortgage for purchase.
•1. Who is eligible - everyone in the home must be 62 or older
•2. What is income requirement - No income requirement
•3. What is min. credit score - Credit Reports are not required
•4. You can use the Reverse Mortgage to PURCHASE a home
•5. NO PAYMENTS required
•6. Everyone must go thru Counseling for the Reverse Mortgage first
As with any financial decision you should always get the advice of a professional. In addition to using a professional that is familiar with this type of mortgage, the reverse mortgage also requires a counseling session for the principals involved in the transaction.
Bill Oliver with Crescent Moon Mortgage in Columbia is a broker that is familiar with the reverse mortgage for purchase. You can contact Bill through his web-site.
You can also get more information about reverse mortgages in general by visiting the US Dept of Housing and Urban Development site.
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