Effective Jan. 1, 2009
Not only can a Senior, age 62 or older, do a reverse mortgage on their own home, they now have the option to purchase a home using a reverse mortgage. This is a great product to help seniors that want to stay in a home, but cannot manipulate stairs , current home is to large, to much maintenance or the location is not desirable for them. For what ever reason, they now have the option to purchase the retirement home that suites their needs.
There is no qualifying for a reverse mortgage. Which means, all they have to have is the proper amount of equity in the home. They can close of the reverse mortgage purchase and never have a mortgage payment. The purchase products are the same as if they were doing one on their existing home.
For example, if the purchase price was $450,000, the down payment required to do a reverse purchase would be approximately $189.000.