It has been quite some time since the FHA (HUD) started insuring reverse mortgage purchase loans, however the program never really took off. Much to my surprise, even some of the more sophisticated buyers were not using reverse mortgages to buy homes. I have always promoted reverse mortgage home purchase scenarios to borrowers but to no avail. Few of them could see the absolute sense this type of transaction makes.
Today, it just takes a larger down payment to buy property, no matter what type of mortgage you are considering so why not consider a reverse mortgage purchase. If you have approximately 40% of the purchase price in a cash dwon payment, a reverse mortgage purchase loan could allow you to buy that home and live mortgage payment free for life.
This also makes sense with the cash buyer. If you are considering paying cash for a new home, why not keep 60% of your purchase price in the bank and let us finance the rest with a reverse mortgage purchase loan? You could use less cash to get the deal done or buy twice as much house! The choice is yours but in either case, call me with your scenarios to get the specific details on the program from a trusted source with expertise in reverse mortgage home purchases.
Michael Manfredi is a Reverse Mortgage Specialist
Reverse Mortgage Concepts
Phoenix, AZ 85020
(602) 456-0009
(888) 697-5556
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