Reverse Mortgages for Home Purchase
The reverse mortgage for purchase program helps homebuyers fulfill their dreams of buying a home without having to worry about affording a monthly mortgage payment. This leaves the homeowner with increased cash flow, additional funds and also provides peace of mind. The untapped equity in your home increases over time, you or your heirs still "own" that equity - not the bank, since you retain full ownership of the property.
Why would anyone want to purchase a home with a reverse mortgage?
The following are some of the benefits of using a reverse mortgage to purchase a home:
- Time to move. People decide to move for multiple reasons: Time to down-size/right-size
- The home is too big or the yard maintenance is overwhelming
- More convenient location
- People may not want to drive as much and they may want to be near restaurants, grocery stores and medical facilities
- To be near family
- As the years go on, many retirees would like to be near family and enjoy their company, but at the same time have a home they want to go to when they want to "get away"
- The title of the property always remains in the homeowner's name, never changing ownership
- A reverse mortgage is only due when both homeowners pass away, sell the home or both choose to vacate the property. There is a never a prepayment penalty
- A reverse mortgage cannot go into foreclosure as long as the borrowers are fulfilling the requirements of the loan