subject: The New Reverse Mortgage Purchase Rule Releases Seniors From Monthly Payments [print this page] The new reverse mortgage purchase rule came into effect in January 2009 and it helps especially those senior citizens, who have problems with their credit information, monthly incomes or who are not willing to make the monthly payments, like with the normal mortgage loan.
1. The Reverse Mortgage Purchase Loan Allows A Senior To Change Home.
The traditional reverse mortgage loan is meant for a senior, who stays at his home and wants to enjoy about the monthly income. But if he does not feel comfortable there, he can use this new reverse mortgage purchase loan and to buy a new home for himself without those monthly back payments.
This is a chance to make some extra income, because the new rule determines, that when you apply for the new reverse mortgage purchase loan, the appraised value of your old, or present, home will be calculated, when the down payment will be decided. You can even avoid to pay them.
2. Can You Qualify For The New Reverse Mortgage Purchase Loan?
Yes, if you are American and own a home, where you live permanently at least 6 months a year. There are no income or credit requirements, but you have to keep your home in a good shape and to take care of the insurances and taxes.
So if you have a home and you want to apply this new reverse mortgage purchase loan, it will be federally insured. Now the market value of your present home is appraised together with the new home, when the down payment will be determined.
The key point with this new reverse mortgage purchase loan is, that the appraised value is used instead of the quick sales price value. The difference can be big. This means that in many cases the seniors can avoid the down payment totally. And, this is important, it leaves more disposable cash for a senior.
3. The New Reverse Mortgage Purchase Means Flexibility.
Now a senior can downsize by moving into smaller and cheaper home closer to the friends. He can also make some extra proceeds from the sale of the old home. And he has not to make any monthly back payments as long as he lives permanently in the home. What a great benefit!
This new reverse mortgage purchase became valid on the first of January 2009. Since then they have been federally insured. So if you are age 62 or over and qualifies to this program, you better to start looking around.
by: Juhani Tontti
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