A Purchase Reverse Mortgage can free them from monthly house payments.
A purchase reverse mortgage is a financial tool that provides secure retirement. Buyers who thought their retirements were set are finding out they don’t have the resources they thought they had now that credit is tightening, retirement accounts are plunging and savings are becoming inadequate.
No credit check
No income requirements
No house payments as long as they are in the home
Will not affect Social Security or Medicare benefits
FHA insured and guaranteed
Purchase scenario: Bill and Jane are 70 years old and empty nesters. They just sold their home they have lived in for 30 years and netted $190,000. They want something newer and smaller in a gated community with all the amenities. Their Realtor has found them the perfect home for $200,000. With the reverse mortgage purchase they will get “net proceeds” of $117,328 (assuming the seller is paying for deed stamps, owner’s title policy and survey). $200,000 less $117,328 = $82,672 is the cash to close with no mortgage payments ever. And they still have $107,328 left over from their sale!!