Buying a Home With a Reverse Mortgage.
So it’s pretty easy to buy a home with a Reverse Mortgage — that is, if the builder has been informed and understands the process.
“After thinking about why the builder would decline an offer in this climate, Branson comes to the realization that there was too much fear of the unknown (ie. HECM for purchase). When you approach a builder with an approval letter to purchase a home using a program that requires no income and very little credit qualification, I can understand why they might be worried. One of the in house lenders even asked the borrower for a 1040 to qualify for a HECM… (from Reverse Mortgage Daily, March 23, 2009,
As of January 1, 2009 FHA began insuring Reverse Mortgages for purchases, not just refinances! The former Fannie Mae for purchase program ended December 31, 2008 and was replaced by the HECM for purchase program.
A HECM for purchase can help you achieve your dream home. The HECM for purchase program was designed to allow seniors (at least 62 years of age) to purchase a new residence and obtain a reverse mortgage all at the same time. You can downsize or buy the home you’ve been wanting or move closer to your children and grandchildren.
With the typical Reverse Mortgage, the HECM for Home Purchase has a maximum FHA lending limit of $625,500.
Eligible properties are: one to four unit properties. Construction must be completed. Coops, homes without a C.O. (Certificate of Occupancy), and Manufactured homes that were built prior to 1976 are excluded.
What is required as regards occupancy? The HECM for purchase home must be your primary residence. And the HECM purchaser has 60 days in which to occupy the home. No seller’s concessions are permitted.
Bridge loans and interim financing (secured or unsecured) are prohibited. There can be no other existing loan but the Reverse mortgage unless the loans are satisfied prior to the closing. All liens must be satisfied at closing and there must be clear title.
Credit card advances and equity loans cannot be used toward the purchase of the home or the closing costs.
Note: Manufactured homes that were built after June 15, 1976 must conform to the Manufactured Home Construction Safety Standards as evidenced by affixed certification labels (i.e., data plate and HUD certification label). The home must be on a permanent foundation as required in HUD’s Permanent Foundations for Manufactured Housing Guide.
HUD Approved Reverse Mortgage counseling is a required safeguard for Reverse Mortgages and the same is true with the HECM for Purchase. Your Reverse Mortgage Specialist will tell you how much you qualify to receive and a HUD approved counselor will answer all your questions. Happy house hunting!
Yeah, It’s a good idea, I would like to try it soon.
Mortgage
May 13, 2009
Reverse mortgage is a useful estate planning tool that banks and financial institutions ought to offer making available to seniors. It’s a great security for them to ensure the delivery of their pensions in the amounts they thought forthcoming.
RM_Apply
May 16, 2009