REALTORS, FHA Authorizes Reverse Mortgages for Home Purchase

By
Mortgage and Lending with Josh Borba - MLS Mortgage / MLS Reverse Mortgage NMLS #76821

Did you know that your senior clients can purchase a home with a HECM reverse mortgage? It's true, as of January 1, 2009,  FHA began insuring reverse mortgage loans for Seniors to purchase homes. Reverse mortgages have traditionally been available for refinance loans in the past, provided the Senior resided in the home.  

What does this mean to Seniors?  This is really great news for Seniors, 62 years of age or older. This program will allow Seniors to leverage their cash and a reverse mortgage does not have required monthly mortgage payments like traditional mortgages. Reverse mortgages do not have credit or income requirements, therefore, this will make buying a home for first time buyers, seniors looking to downsize  from their existing homes or those seniors needing special requirements like wider hallways,  much easier to obtain. Reverse mortgages are based on appraised value and Borrowers age. The older you are, the more you qualify for.  

Right now is a perfect time to take advantage of this program. Fixed rates reverses are available and rates are really low, about 5.63%. There are  so many positive attributes to these loans such as never needing to make monthly payments, no income or credit qualifying and values are based on appraised value rather than purchase price. There are so many good deals out there right now that a home appraising for more than it's purchase is not uncommon. The value of the appraisal coming in higher than the purchase price allows seniors to purchase their property with lower down payments. This program allows down payments to come from retirement accounts, 401K's, stocks, etc.  

Borrowers must be 62 years of age or older to take advantage of this program. The Senior always owns their home (not the bank) and their heirs can inherit the property just like traditional loans.  Seniors wanting to learn more should contact a HUD approved lender and especially a lender who is a member of the National Reverse Mortgage Lenders Association (NRMLA). NRMLA members abide by a highly ethical code of ethics.

Reverse Mortgage Lender

HECM for Home Purchase

Comments (2)

Anonymous
REGuru20009

That really is a great deal for those seniors looking to downsize from a larger home or even a home with a large yard that requires a lot of upkeep. I'm a huge fan of reverse mortgages and how they benenfit seniors. Keep up the good work.

Feb 11, 2009 02:22 AM
#1
Josh Borba
Josh Borba - MLS Mortgage / MLS Reverse Mortgage - Auburn, CA

I really feel that Realtors need to explore the HECM for purchase a little further. I'm finding that most Realtors I speak with don't understand exactly how the program works. This program could be a nice niche to advertise which can generate additional transactions.

Mar 22, 2011 03:50 AM