Though the federally-insured reverse mortgage has been in existence for over 20 years now, the reverse mortgage for purchase was introduced just over three years ago in October 2008. This program gives people who are at least 62 years of age the ability to purchase a home without taking on a new monthly mortgage payment. This will leave you with additional money each month to pay for whatever you wish.

Advantages of Purchasing A Home With A Reverse Mortgage

You can purchase a home with NO income or credit qualifications!

• Because a reverse mortgage requires no monthly mortgage payments, the reverse mortgage purchase underwriters do not have to verify that you can afford a payment. This is different than any other program.

You will never owe more than the market value of your home!

• A federally-insured reverse mortgage for purchase is non recourse. This means that as long as you remain current on all of your obligations, you can never owe more than the fair market value of your home.

You can remain in your home with NO monthly mortgage payment!

• As long as you remain current on your homeowner’s insurance, real estate taxes, and home maintenance, there are absolutely no monthly mortgage payments required.

Reverse Mortgage Purchase Qualifications

• You must occupy the home as your primary residence.
• All repairs must be completed by the seller prior to closing.
• Your down payment may come from cash assets, gift funds, or tax-deferred retirement accounts. (For exceptions to this rule, you must get approval from the reverse mortgage lender.)
• Seller cannot provide any financing or concessions.

With A Reverse Mortgage, You May Purchase:

• FHA-Approved Condominiums
• Single Family Homes
• Manufactured Homes that comply with FHA regulations
• 1-4 unit homes with an issued Certificate of Occupancy

With A Reverse Mortgage, You May Not Purchase:

• Cooperative Units
• New Constructions without a Certificate of Occupancy
• Boarding Homes
• Bed and Breakfasts
• Other homes intended to be used as hotels or transient properties

Advantages of a Reverse Mortgage for Purchase

Using a reverse mortgage for purchase can help you:

• Purchase a new home without a new monthly mortgage payment.
• Relocate to a new location to be closer to friends or family.
• Downsize to a home with accessibility features like ramps, handrails, and wider doorways.