Why would anyone want to purchase a home with a reverse mortgage? No payments of course. There are two main reasons to do a reverse mortgage purchase.
Time to move
If you decide that you need to move for multiple reasons like
- Time to downsize.
- Your home is too big or the yard maintenance is overwhelming.
- You want to live closer to facilities.
- Maybe you don't drive as much and want to be near the restaurants, grocery stores or even medical complex.
- You would like to be near family.
- As the years go on, most retirees would like to be near family and enjoy their company, but at the same time, have a home that they would want to go to to "get away".
There are plenty of other reasons, but these are the big ones that I see regularly.
Second Home
Have you ever wished that you could have a second home in a warmer dry State, but couldn't figure out how to afford it? If you have friends that are snowbirds and you would like to try it, then consider buying a second home with a reverse mortgage purchase.
That's right you can buy a second home with a reverse mortgage. It is not as common as number one above, but let's walk through how it works. By the way, did I mention that there could be no payments also?
Step 1:
You need to qualify for a reverse mortgage of course, so the basis are; are you at least 62 and do you have equity in your home? Yes to these questions puts us into the next step.
Step 2:
Talk with a loan officer. In a matter of a few minutes, you will know what you qualify for. It doesn't cost a thing, and it is fast.
Step 3:
Start looking for a new home.
Obviously there is a little more to it than that, but it is almost that simple. What you will be doing is using the equity in your home to get enough cash out to purchase your second home. Since the reverse mortgage is on your primary residence, you don't have to make any payments.
In the event you don't have enough equity to do the new purchase, you might have enough to put a good down payment on it to get the payment very affordable.
Even if you don't get much cash because you currently have a mortgage payment, just doing a reverse mortgage on your home is a great way to free up some extra cash for the necessary living expenses.
If you would like to see what you qualify for give us a call. If you are ready to start looking for a new home,
If you understand the reverse mortgage process, the other details are exactly the same. You can find plenty of reverse mortgage information on this site to help you make your decision.