A purchase reverse mortgage works much the same as a reverse mortgage refinance except you are getting the loan to buy a home, and all of the funds available will go towards the purchase of the home.
First, you must have enough money for the down payment requirement. Loan-to-values for purchase reverse mortgages are calculated the same as a reverse mortgage refinance. Depending on the age of the borrower, a certain down payment is calculated. Again, just like the Reverse Mortgage Refinance product, the older the borrower is…the less the down payment.
The down payment can come from the sale of a home, cash in the bank, or even a gift.
Just like a reverse mortgage refinance, the borrower is responsible for paying their property taxes and insurance.
This is a great loan for those seniors that want to move and do not want payments or don’t want to use all of their available cash to purchase a home. If you would like more information, check us out at saddlerockreverse.com.
If you or anyone you know has questions about a Reverse Mortgage, please contact us.