All posts filed under: Mortgage

What Is A Purchase Reverse Mortgage

The Purchase Reverse Mortgage incorporates the tenets of a normal purchase transaction with the benefits of obtaining a Reverse Mortgage. The qualifications for a Purchase Reverse Mortgage are the same as for a regular Reverse Mortgage. The main difference is the buyer is not re-financing the property so the use of equity is much harder. The buyer must be sixty two years of age at the time of the purchase and they must agree to occupy and maintain the residence. Since a Reverse Mortgage lender is not going to advance much more than fifty percent of the appraised value of the property, the buyer is going to have to make up the difference between the loan and the purchase price, plus closing costs, with money out of his or her pocket. With a Purchase Reverse Mortgage, the buyer can not have any secondary financing either from a bank or from private sources. The Reverse Mortgage program does not allow any other liens on the property. Getting it started When the buyer and seller agree to …