What Realtors Should Know
Realtors | Purchase FAQs | Purchase Guidelines
If you would like to find how the reverse mortgage purchase program can work for your client and the home value they qualify for, contact Maggie O’Connell at 800 684 9438 or
send an e-mail.
The Reverse Mortgage for purchase program opens an entire new clientele for Realtors. Many seniors want to relocate but they don’t think they can because normal mortgage qualification has income requirements don’t meet their retirement income.
If you want to increase sales, both on the selling side and the buying side, get educated on the FHA Insured HECM Reverse Mortgage for Purchase Financing.
Why do reverse mortgages work for retired home buyers?
No Mortgage Payments!
The reverse mortgage lets the borrower pay the loan back after they leave the home permanently, and that includes interest and fees.There are no mortgage payments due during the time at least one borrower lives in the home. How does that work? Over the years, interest charges and mortgage insurance continue to add to the loan balance making that balance rise over time.
No Income or Credit Qualification!
Because mortgage payments are not required, the lender isn’t looking for the borrower’s ability to make payments. Bad credit and low income is not a factor in qualifying, although some serious credit issues could jeopardize the ability to get the reverse mortgage. For example, bankruptcies must be resolved and recent foreclosures, short sales or mortgage delinquencies could affect your ability to qualify.
When purchasing a home using a reverse mortgage and you intend to keep your existing residence, you must show that your income can support both properties, even if your old home will be rented.
- All borrower(s) must be at least 62 years old and occupy the home as primary residence within 60 days of closing.
- Single family residences only, no 2-4 unit properties allowed for the purchase program
(2-4 unit owner occupied acceptable for refinance)
- Down payment amount is based on age of youngest owner, the lower of the sales price, appraised value or maximum claim amount and the expected interest rate
Note: if the expected interest rate increases, the proceeds from the reverse mortgage are reduced and the down payment requirement is increased.
Other ways reverse mortgages can help:
- Parents do a reverse mortgage on their home and give money for a down payment so their children can purchase a home.
- Pay off a mortgage and live without mortgage payments for life.
- Buy out a spouse in a divorce situation
- Supplement income with monthly payments.
- Create a line of credit for future needs.
If you would like to know more about this program, please fill in the email address request form below or call Maggie O’Connell at 800 684 9438.