Reverse Mortgage, Home Purchase

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Recent changes by Congress to the FHA-insured Reverse Mortgage program now allow seniors to buy a home with a Reverse Mortgage. If you are 62 or older and have had a foreclosure, you may be able to purchase a new home after foreclosure immediately with a reverse mortgage.* The requirement to purchase a home with a reverse mortgage is primarily on your downpayment. There are no credit score qualifications or job requirements since you will not be making a mortgage payment.

Here are the requirements for getting a reverse mortgage after a foreclosure:

The Reverse Mortgage Home Purchase Process

Buying a home with a Reverse Mortgage is quite similar to buying a home with a conventional mortgage, with two small exceptions. Rather than determining a down payment based solely on the purchase price, the minimum down payment will be based on a factor of your age, interest rates, and the lesser of the home’s appraised value, purchase price, or FHA-imposed national lending limit.

Eligibility Requirements

The basic eligibility requirements to purchase a home with a Reverse Mortgage are:

1. All titleholders must be aged 62 or over

2. The home must be your primary residence

3. The purchased home must be either a single-family residence, a residence in a 2- to 4-unit dwelling, a condominium, or an eligible manufactured home.

4. The down payment must be from qualifying sources

5. You must complete a HUD-approved counseling session

6. Calculating the Minimum Down Payment

Because the funds available from a Reverse Mortgage are dependent on a number of factors, there is no single “rule of thumb” to determine the minimum down payment amount. The calculation to determine how much is available is based on the following:

a) The age of the youngest borrower on the title

b) Current interest rates

c) The lesser of the home’s appraised value, purchase price, or FHA-imposed national lending limit

d) Loan fees

e) The older the borrower, the less will be required for the down payment. Based on current interest rates, a 65 year old borrower would typically need a down payment of roughly 35%-40% of the purchase price of the home.

Buying a home with a reverse mortgage after foreclosure

Some reverse mortgage lenders have instituted seasoning requirements for borrowers who have previously had a foreclosure. The lender may require a minimum of two-three years to elapse from the date of the foreclosure. Some lenders may allow for a shorter 12-month waiting time period depending on the circumstances surrounding the foreclosure. if borrowers can present documentation of extenuating circumstances.

In the event of a foreclosure, prospective borrowers can shorten the waiting period if they have re-established credit with at least three trade line sources (such as a credit card) that can be verified with a minimum $1, 000 credit line.


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Purchase a home using a reverse mortgage

2009-05-29 13:55:27 by Reversemortgagepro

Many people choose to downsize their home after their kids have grown up and moved out. Did you know that you can use a reverse mortgage to purchase a home? If you are 62 years or older, you may sell your current home, use some of those proceeds and purchase a new home with a reverse mortgage. The terrific thing is that you would have no house payment for as long as you lived in the home!

REgistration needed to get REverse Mortgage

2004-09-03 19:35:29 by memberofhumanity

I some states you need to take a course before taking a reverse mortgage, simular to a first time home-buyers program.
Why would you give up your equity? There are other options.....
If you are trying to find a way to get money to purchase or cover the cost of long term care then make sure an eldercare attourney is involved...

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Banks try to attract home buyers with low interest rates  — Business Standard
Barely days after the Reserve Bank of India (RBI) surprised the Street by keeping the repo rate unchanged, banks and mortgage lenders have started lowering the interest rates on home loans.

Prince George's County home sales  — Washington Post
For information about other residential real estate transactions, visit www.washingtonpost.com/homesales. ACCOKEEK AREA. Bonds Retreat Rd., 14800-Alan R. ..

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