Use A Reverse Mortgage To Purchase!
That’s right! Older homeowners can use a Reverse Mortgage to purchase a new principal residence and downsize from their current residence, or relocate to other areas due to family, economics or any other reason.
A reverse mortgage for a Purchase is a Home Equity Conversion Mortgage (HECM) that allows older homeowners to purchase a new principal residence AND obtain a Reverse Mortgage in a single transaction. As with a traditional Reverse Mortgage, all homeowners must be 62 or older to qualify.
This can help more older homeowners relocate without credit qualifications or a monthly mortgage payment. This option can certainly assist realtors and builders with sales and opportunities that may not be available with traditional lending. The no credit qualification will be changing at the beginning of 2014 but we are not sure of the exact guidance yet.