Many states including California have passed new legislation regarding Reverse Mortgages that allow seniors 62 and older to purchase a new home using a reverse mortgage to cover the balance of the transaction. This opens up many options for seniors looking to relocate, downsize or simply purchase a home.
In the past, reverse mortgages were only used when seniors were living in their primary residence, at which point they could apply for a reverse mortgage. This in and of itself, was great news and assisted many seniors by allowing them to stay in their homes and supplement their income. However the quandary became when the homeowner wanted to move for one reason or another. In addition to selling their home, they would have to qualify for a mortgage, live in the new home for a seasoning period, then refinance into a reverse mortgage. This not only becomes costly, but many seniors would not be able to qualify for a traditional mortgage, especially today.
However the reverse mortgage for purchase changes all of that. Reverse mortgages include the following benefits:
- No Income Requirements
- No Credit Score Minimums
- Generate an Income via Owning a Home
- Tax Free Income
- Only repay the note when you move out of the home
- You can never owe more than then value of your home
A Reverse Mortgage for Purchase allows seniors to downsize, relocate or simply purchase a home while receiving the added benefits generating supplemental income right away. Is this a beautiful country we live in or what!
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