Using a Reverse Mortgage to Purchase a home
Using a Reverse Mortgage to purchase a home is known as the HECM for purchase program. This is a program available to Seniors who are 62 years of age or older and are looking to purchase a home but don't want, or can't afford, a monthly mortgage payment.
How does it work? The client puts a down payment which is calculated based on the age of the youngest borrower, and the reverse mortgage covers the remaining balance. The client can now live in the home they desire with no monthly mortgage payment!
The borrower is still responsible for paying property taxes and insurance and the loan balance and accrued interest is not due until the borrower is no longer living in the home. This is an amazing tool for Seniors who wish to upsize, downsize, or relocate without the need for monthly mortgage payments. I would love the opportunity to educate you further and help you help your clients!
Reverse Mortgage Specialist
Security 1 Lending