• Reverse Mortgage Home
• Questions You Should Think About
• Reverse Mortgage Myths
• The Reverse Mortgage Purchase
• What’s Different for Reverse Mortgages?
• How Does a Reverse Mortgage Work?
• Reverse Mortgage Ins and Outs
• Top 10 Questions To Ask
• Are Reverse Mortgages Safe?
• Calculating a Reverse Mortgage
• Pros and Cons of Reverse Mortgages
• HECM vs Other Products
• HELOC vs HECM Comparision
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The Reverse Mortgage Purchase

Reverse mortgages add a new element to the housing purchase market that is beneficial for seniors.  Using a reverse mortgage seniors can purchase a home using similar, if not easier, qualifications to that of the “Stated Income” loans of the past.  Reverse Mortgage qualifications basically comes down to the down payment.  

This is great news for many seniors who have since retired, lost a substantial amounts in their retirement funds, and are looking to downsize their home, or perhaps move to a more affordable housing districts.

A senior homeowner can now sell their current home and apply the all or part of the capital gain from the sale as part of the down payment on the next home.  Generally speaking, a homeowner needs to put 40% down to qualify for a reverse mortgage. 

What is unique about a reverse mortgage is that the lending bank is not concerned about the ability of the homeowner to repay the loan, as with traditional loans.  Therefore, the lack of a job, income, or savings becomes a non-issue when qualifying.  Furthermore, if one negates the inheritance factor of feeling obligated to pass down equity to heirs, a reverse mortgage allows a senior citizen to make a 150% return on their money, being that they will put down 40% and receive 60% back.