Here is some information on utilizing FHA Reverse Mortgages to double or more your purchase power on your new Sun Lakes home and still not have any monthly mortgage payments!
There are 3 Major Benefits To Home-buyers
- Gives home-buyers who are downsizing more purchasing power than if they had to pay all cash
- Designed to allow your seniors to purchase a new principal residence and obtain a Reverse Mortgage within a single transaction by eliminating the need for a second closing.
- Buyers do not have to "qualify" for monthly payments on the new purchase transaction. A significant detail to senior home-buyers on a fixed income.
Other Benefits to Home-buyers
- Eliminates Monthly Mortgage Payments
- Borrower Maintains The Title
- Loan Is Non-Recourse
- Remaining Equity Goes To Borrower Or Borrower's Heirs, Not The Bank
- No Pre-Payment Penalty
- FHA-Insured
- Usually No Income Verification Or Credit Score Requirement (If buyer is retaining their former home as rental property there are income requirements)
* Certain transactions will require "qualification" - ask your Reverse Mortgage Specialist for specific details.
HECM- Home Equity Conversion Mortgage) We pronounce it "Heckum"
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- FHA defines "HECM for Purchase" as a real estate purchase where title to the property is transferred to the HECM borrower, which the borrower will occupy as a principal residence, and, at the time of closing, the HECM first and second liens will be the only liens against the property.
Lakeside Condos are now FHA Approved!
Ask your Realtor about using an FHA Insured Reverse Mortgage to purchase your new Sun Lakes home!
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By Deborah Nance
Your Local Southern California Reverse Mortgage Professional
I live in a retirement area, and I can't tell you how many times I have been called to list a home where a spouse (usually a woman) whose husband/wife have passes and they are having to sell their home to move back to family out of state. Several times the wife has broken down into tears because they didn't want to go but with the loss of income from the deceased pension, they need help. Almost every time, I have explained reverse mortgage and how it would benefit them but the adult children shoot the proposal down. People truly need to be educated on the current laws concerning reverse mortgage I always feel so sorry for them. I think it is a great tool.
Deborah: Great post and great blog in general. Reverse Mortgages are definitely a great tool to use for those who qualify....Linda above sites a really good example.
Deborah, well illustrated. Thanks
Deborah, keep up the good work!