Reverse Mortgage Now Allows New Home Purchase

Did you know that there is a program that allows seniors (62 years and older) to purchase a new home without taking on a new monthly mortgage payment?  It will enable seniors to:

Purchase a primary residence more suitable for their current needs (ie. single story vs. two story)

Purchase a home in a senior housing community

Move into a new home that’s easily accessible with modern amenities

Downsize to a smaller, easier-to-maintain home

Relocate closer to friends and family members

A reverse mortgage is a non-recourse loan that enables senior homeowners (age 62 and older) to convert a portion of their home’s equity into tax-free funds.A new twist on a reverse mortgage  is called a Home Equity Conversion Mortgage (HECM) For Purchase and it is currently offered by Wells Fargo.

HECM is an FHA-insured reverse mortgage than enables senior homebuyers to purchase a new primary residence and obtain a reverse mortgage in simultaneous transactions with no monthly mortgage payments.  HECM allows buyers to combine reverse mortgage proceeds with a down payment from their current home sale or other assets, to purchase a new home.

Features of the Home Equity Conversion Mortgage (HECM) For Purchase program are:

There are no income, health, employment, or credit-score qualifying requirements2

The amount of funds clients can qualify for is based on their age, the property’s value and current interest rates

Funds may be obtained in a lump sum, monthly payments, a line of credit, or a combination of any of these options

Applicants must agree to participate in a counseling session with a HUD approved agency

Homeowners retain title to the property and continue to own their home

Loan proceeds are not considered income and will not affect Social Security or Medicare benefits.

My job as an Alain Pinel Realtor and Seniors Real Estate Specialist (SRES) is to help you make the best move to a new home.  Please call Rick Bonetti at 408-857-8800 when you are thinking about selling your home; I have many resources available to assist you.

Yesterday I was at a Seniors Resource Faire in Campbell, CA where I met  Jeff Thompson, Wells Fargo Reverse Mortgage Consultant.  All he does is reverse mortgages and he seems to really know his business.  Call Jeff at 408-385-1244 for specific information about reverse mortgages.

Disclosure:  Borrowers must be age 62 or older. Consult a tax advisor. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. Family members are also strongly encouraged to participate in these informative sessions.  Monthly reverse mortgage advances may affect borrower eligibility for other programs. Consult either a local FHA program office or an attorney to determine how, or if, monthly reverse mortgage payments might affect a specific situation.

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