Beaverton Or Reverse Mtg Q Can I buy property close to kids?
My wife found a home in Beaverton Oregon close to our children that is her dream home. This dream home is a steal on the market however it is priced just beyond my reach. I heard that I might be able to use a Reverse Mortgage to purchase the new place in Beaverton, OR and want to know how it works.
Great question! In 2008 HUD starting allowing Older American's to use a Reverse Mortgage or HECM (Home Equity Conversion Mortgage) to purchase a home. This is a great way to get into your dream home without adding a monthly mortgage payment. To qualify, you must be 62 or older because this product rewards your age. The older you are, the more you qualify for. This means that your required down payment will be based on the purchase price and your age. The down payment is a range between approximately 35-50%, and the balance is provided with the new purchase money made available by HUD. You are not required to make a payment on the principal and interest as long as the home remains your primary place of residence. Because you own the home you are still required to pay your property tax and keep it insured.