The Mortgage Outlet would like you to know that a Reverse Mortgage can be used to purchase a home in Sayville, New York. Reverse Mortgages work similarly to a conventional or “forward” mortgage. They can, however, provide those individuals 62 years and older with a better option to buy a home as income verification is not required and a very limited credit review is needed for a mortgage approval. Just like a regular mortgage, you will make a down payment on a home and then borrow the remaining money from a lender. Unlike a conventional mortgage, with a reverse mortgage, you are not required to make any monthly mortgage payments. Once you permanently leave the home, your loan balance will be paid off in full, no matter what the balance is. You, of course, at any time may choose to make payments and reduce the loan balance just like a conventional “forward” mortgage.
CLICK HERE TO SEE HOW MUCH YOU CAN QUAILFY FOR
In today’s tough lending environment, a reverse mortgage can be an excellent choice if you wish to purchase a home to down size, move closer to family, or buy into a 55 or over community. For those of you 62 and older, a reverse mortgage provides you with options like not having to make monthly mortgage payments, actually having enough money to pay cash for your purchases, and not having to deplete your cash reserves.
Here is an example on how it will work: David is 70 years old and has sold his house netting him $500,000. He is wants to buy a smaller home for $ 300,000 with a reverse mortgage and is able to finance $198,900 due to his age. By using a reverse mortgage instead of paying cash, David will have an additional 101,100 to help him with his retirement.
REVERSE MORTGAGE ELIGIBILITY REQUIREMENTS
To qualify for a reverse mortgage, all parties that will be on the contract of sale and deed must be 62 years or older. The home that you are buying with a reverse mortgage must be your primary residence. Reverse mortgages are available for single family homes, town homes and some condominium complexes. If you are looking to buy a condo, make sure that it is an FHA-Approved Condominium Project. There are no income or credit score requirements when obtaining a reverse mortgage. The down payment required is based off of the youngest borrower, the appraised value of the home you are buying and the present interest rates. Generally speaking, the older you are and the lower the interest rate, the more money will be available to you from a reverse mortgage.
BENEFITS OF A REVERSE MORTGAGE
A reverse mortgage can offer those over than 62 year of age benefits that are not all available when considering a conventional “forward” mortgage.
<!--[if !supportLists]-->1. <!--[endif]-->No mortgage payments are required with a reverse mortgage as long as you live in your home.
<!--[if !supportLists]-->2. <!--[endif]-->It is Safe – Today’s reverse mortgages are protected by the Federal Government through the FHA.
<!--[if !supportLists]-->3. <!--[endif]-->You are protected in case of a down turn in the real estate market.
<!--[if !supportLists]-->4. <!--[endif]-->Payment flexibility – you have the option to pay some or all of the reverse mortgage balance owed at any time without any penalties. You can choose to make payments or choose not to make payments as your circumstances change.
<!--[if !supportLists]-->5. <!--[endif]-->You can have your real estate taxes and homeowner’s insurance included in your reverse mortgage.
<!--[if !supportLists]-->6. <!--[endif]-->You retain full ownership of you home
<!--[if !supportLists]-->7. <!--[endif]-->When home is sold, you will never owe more that what the property is worth.
David Bailey, owner of The Mortgage Outlet, can provide you with a free no cost or obligation estimate of the loan amount you would qualify for using a reverse mortgage to purchase a home Sayville, NY. I am a reverse mortgage professional and I will work closely with you, your Real Estate Agent or your seller to help make your purchase go smoothly. Contact us here should you have any questions
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