By Leslie Stringham
When you purchase a home with the Reverse Mortgage Purchase, there is no income verification, no employment verification, and no credit score necessary. The title company will run a title check to ensure there are no liens, the lender will verify the source of the funds for the down payment, and the transaction is ready for closing. The Reverse Mortgage Purchase Program issued by the FHA is very simple. A realtor negotiates a sales contract between the buyer and the seller. The buyer becomes qualified for the Reverse Mortgage Purchase Program in which he or she will find out the amount of the Reverse Mortgage that they are qualified for. The difference between the purchase price and the reverse mortgage amount is the down payment. Sound familiar? It should, because it’s the same procedure you are using with a forward mortgage. By using a Reverse Mortgage Purchase Program to purchase a property, you can bypass the need to ever have a mortgage payment. The result is being able to have more money to enjoy life with! The difference between the regular forward mortgages you are familiar with and the Reverse Mortgage Purchase Program is that the Reverse Mortgage Purchase Program is much easier to qualify for. The main factors needed are (1) age 62 years of age or older for all borrowers and (2) the source of funds for the down payment. That’s it!! Many new home buyers have just sold another home and are using the cash for their new purchase. They have a huge amount of cash which they are willing to put down on a home so they won’t have to have a mortgage payment. However, by doing this, they clean out their bank account and use their entire sale proceeds for their new purchase. With a Reverse Mortgage Purchase, a buyer only needs some of that cash as their down payment on the new home. Now they’ll have no mortgage payments, and still get to keep a large portion of their cash in their own bank account. The best of both worlds! As the homeowner, you do not have to make any mortgage payment to the bank as long as this property is your primary residence. You retain ownership of your home, you have the security of knowing if your spouse passes, you can remain in the home for as long as you desire no one will be knocking at the door the following month for a mortgage payment. The home can be sold at any time you decide. After both spouses pass, the home becomes part of your Estate.