Yucaipa Reverse Mortgage For Purchase Story

I do love my job!  I have been brainstorming with this one couple in Yucaipa for over 2 years.  They knew a reverse mortgage would be a part of their retirement strategy, just not sure when or how.  They looked into two options.

Refinancing their current home with a reverse mortgage to payoff the existing loan and staying.

or...

Selling the existing home and buying a smaller more suitable home with a Reverse For Purchase.

As time progressed it became clear that downsizing and buying with a reverse mortgage was the better strategy for them. Taking care of their big home on a large parcel would have become a burden both physically and financially. They realized that having a smaller home in a gated  community would be a safer, easier and better choice as they age. With home values in Southern California on the rise, they figured it was a great time to make the jump.  So, they listed their home with a great local Realtor and it sold quickly.  After accepting their buyers offer, they began looking at homes and finally found the perfect place.  Single story, smaller, but not too small, in the gated Active Adult Community of Solera in Beaumont, CA.

By using the reverse to help them pay for their new home they did not have to use all of their sale proceeds, and had a nice chunk left over to beef up their Retirement Accounts. The reverse mortgage loaned approximately 60% of the homes appraised value and they put in the rest plus closing costs.

SWEET!  What do you think?

Note: A HUD insured Reverse Mortgage requires no monthly mortgage payments. The homeowners are responsible for maintainging the home, paying property taxes, homeowners insurance and HOA Dues (if any). Pretty much like any homeowner does, with or without a mortgage.