Recently I blogged about using a Reverse Purchase Mortgage to downsize into a smaller home for seniors above 62 with no payment ever!
What if two seniors above the age of 62 want to sell their current home and downsize into a smaller home and live together? Is it possible to use a Reverse Mortgage in this situation? Absolutely. Here is how it would work:
Senior 1 and Senior 2 both own homes that are paid off and can be sold for $500,000 each.
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Senior 1 $500,000 House Value |
Senior 2 $500,000 House Value |
Instead of one senior bearing the total down payment of $200,000, partnering allows them to split the expense and increase their proceeds from the sale of their homes that can now be used for medical and other items.
Each would sell their home for $500,000 put down $100,000 as down payment towards the Reverse Purchase of their newer, smaller home, with gross profit of $400,000 each. There would be no mortgage payment for life and seniors would be able to support each other at home with enough funds ($400,000 each) for some home care support.
This is another opportunity for your clients/family members to downsize strategically!
Contact Concetta Germain, Realtor, MBa, Veteran and Senior Real Estate Specialist at 951 208 9940 with any questions you may have.
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