Last week I received a call from a local realtor here in Fresno. I met this realtor about a year ago. She was very excited about the HECM for Purchase Loan also known as the Reverse Mortgage Purchase Program. However, in the last year she had not had the opportunity to work with any seniors with enough cash to qualify.
The day I received the call from this realtor, she excitedly told me that she had a senior client who wanted to meet with me to go over the reverse mortgage and she wanted to buy a home in northeast Fresno with a reverse mortgage.
As a competent realtor, she wanted to know how to go about helping her client with a reverse mortgage. Here are the questions that we ask to determine if they qualify:
1. How old is the client?
They must be over 62 to be considered for a reverse mortgage.
2. What is the purchase price of the home they are looking to purchase with a reverse mortgage and how much money do they have to put down?
They will need to come in with approximately 50% down payment and closing costs.
3. What is the total income, debt, payments, etc.?
As of April 27, 2015, seniors must financially qualify for the Reverse Mortgage Loan. There is a formula used and this is why a senior needs to speak with a reverse mortgage loan originator before assuming that they will qualify.
Once we have these pieces of information we can get them pre-approved for a reverse mortgage and they can begin the process of purchasing their home.
Each client has a different set of circumstances which is important to keep in mind when speaking with them regarding their reverse mortgage needs. Always consult a professional reverse mortgage loan originator when handling this type of transaction.
For more information on purchasing a home with a Reverse Mortgage in Fresno, California or the Central Coast, contact Jennifer Provencio today at 559-994-3692.
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