Buying a Home with Reverse Mortgage

Many people contemplate a change of scenery at some point during retirement, either to downsize, upsize, improve accessibility, or relocate. Most people don’t realize that a reverse mortgage can be used to purchase a new home.

Using a reverse mortgage in this scenario has multiple advantages, from preserving existing savings, to maximizing the proceeds from an existing home sale, and no regular monthly payments are required. If you’re moving to a higher cost location, using a reverse mortgage can also increase your purchasing power and maximize your comfort in retirement.

Not to pay monthly mortgage anymore!

Retirees, real estate professionals, and most of the homeowners may not be aware of how to buy a house with reverse mortgage and not to pay monthly mortgage anymore! Now, homebuyers can purchase their home with one closing and no waiting time.

Down payment investment is needed to satisfy the rest of the sales price and closing cost.

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Numbers wouldn’t lie!

If borrower sells the existing residence, Reverse mortgage for purchase is ideal for upsizing or downsizing; let me give you two examples:

FOR UPSIZING: let us say you sell your property for $300,000 and want to buy a $400,000 house. The borrower would pay a $200k down payment and would not need to pay mortgage (still insurance and tax are borrower’s responsibility) and use the $100k leftover as investment or for other purposes.

FOR DOWNSIZING: Now, let us say you are selling your property for $300,000 and want to buy a $200,000 house. You use $100,000 down payment and you would not need to pay any monthly mortgage (still insurance and tax are borrower’s responsibility). What you would do with the rest of money (the residual) can provide better quality for your lifestyle.

These are the caveats

Occupancy: what you purchase must be to be your primary residence.
Charges: property tax, property insurance, HOA are your responsibilities.
Sales Contract: The sales contract ought to be fully executed before reverse mortgage for purchase application.
Reverse Mortgage Counseling like regular application for regular reverse mortgage must be to be conducted.

As you can see, this product would open lots of opportunities.

I am always available to answer any questions by email, message, or phone calls

Again, I suggest going to my site and examining all the segments so you would have a better grasp of how you can benefit from a reverse mortgage.

If you’re interested in learning more about reverse mortgage or you prefer to take advantage of a free consultation with no obligation, please contact me at (650)430 7886 or email me at mike@michaelparsi.com to set up an appointment.