Wow! Personally, I have been surprised that some of my reverse for purchase buyers have also been first time homebuyers. And have recently begun working with another! (Thank you Active Rain!)
Reverse mortgage for purchase has been available since 2009. Reverse Mortgage Daily reported that a recent report from HUD showed that 75% of reverse for purchase buyers are also first time homebuyers. These are folks over 62 years of age who are taking advantage of todays home prices and finally living the American dream.
After a lifetime of work and saving they are in a position to set themselves up as homeowners using an FHA reverse mortgage and not having to make a mortgage payment. They can qualify for this loan even on a fairly low fixed income. They must qualify for and agree to pay their taxes and insurance and HOA dues (if any), but in many cases that is less expensive than any decent rental they could find. It’s such a great solution for these brand new homebuyers.
Word to the wise - a reverse mortgage does not require monthly payments and if the homeowner chooses not to make payments - the loan balance goes up. For someone who is planning to remain long term in their home, this can be a great option.