3 Killer Reasons To Use Reverse Mortgage For Home Purchase
This is just great news! If a senior has low income or problems with the credit information, he can now use the reverse mortgage for home purchase. Many seniors do not want to start to pay the monthly payments another time, which they should do with the usual mortgage.
1. You Can Get A New Home Without Monthly Payments With The Reverse Mortgage For Home Purchase.
When the appraised value came into the picture, you can use the reverse mortgage for home purchase program without paying the down payment, so without any cash. Additionally, you have no monthly payments to make as long as you live in your home and use it as your home at least 6 months every year.
2. But Can You Qualify For The Reverse Mortgage For Home Purchase?
The only things, which prevents you to get the reverse mortgage for home purchase are, that you are not able to take care of the insurances, to pay your property taxes, to maintain the property or if you are in the bankruptcy But if you are American, age 62 or over and own the home, you will qualify. Your income and credit information are not asked.
3. Great News: The Down Payment Is According To The Appraised Value.
HUD made one excellent thing for seniors. They will determine the down payment solely according to the appraised value, not according the normal FHA system, which determines the down payment according to the appraised value or the sales price, whichever is less.
HUD allows the senior to benefit from the higher appraised value, which can even eliminate the down payment totally. In this case the reverse mortgage for home purchase leaves more disposable money for the senior citizen.
Actually the older the borrower is and the better deal he can make, the less he needs to pay in cash. The reverse mortgage for home purchase allows also the borrowers, who do not own a property at the moment of the purchase. It makes it also possible for the current owners to buy a smaller home, closer to their friends and hobbies.
The reverse mortgage for home purchase allows the borrower to keep the extra money from the sales of the old home and to use it for the purpose he will. This is a better solution, than to buy a new home with cash to be able to avoid monthly payments or bad credit information.
I am sure you agree, that the reverse mortgage for home purchase is a good option for the reasons I wrote above. You can easily get a more detailed information from the HUD approved counselor, who can also answer to your special questions.
by: Juhani TonttiAbout the Author:Juhani Tontti, B.Sc., Marketing. A New Rule About Reverse Mortgage Makes It Possible To Buy A New Home Even Without Down Payment. That Is How Do Reverse Mortgages Work. Visit: Reverse Mortgage For Home Purchase