Reverse Purchase   

Are you looking to downsize or move closer to family?

            Consider buying a new home with a reverse mortgage.
 

Looking to purchase a new home?  Want to be closer to family, friends, or simply find the ideal house for retirement?

When purchasing a home with a reverse mortgage, you can increase your buying power with the funds you need to right-size your home and eliminate monthly principal and interest payments.*


        

 
 

What is a reverse mortgage and
how do I use it to purchase a home?

You can use a reverse mortgage to purcahse a new primary residence when you find that your exisitng home no longer fits your needs or you want to move to a more desirable retirement location.  A reverse mortgage is a loan that converts your home equity into cash. The unique benefit of this loan is you don't need to pay it back month after month.

Unlike when you purchased a new home with a traditional mortgage, purchasing a home with a reverse mortgage does not require monthy mortgage payments.

Here's How the Reverse for Purchase Works:

 

  • Choose a home that is the right size for your retiement lifestyle.
  • Determine what your required investment is, (your down payment and closing costs) by going to the reverse mortgage calculator on this website.  Click here to go to the calculator. The reverse mortgage will finance the remaining balance.  If you are selling your previous home, you may even have cash left over.
  • Live in your new home without the burden of a monthly principal and interest payment.*
  • Continue to maintain the home and pay typical homeowner fees, taxes, and insurance.
  • The loan does not have to be repaid until the last borrower leaves the home.*
 

Two reverse mortgage options:  HECM vs. HomeSafe.  

FAM offers two reverse mortgage options when purchasing a home: standard Home Equity Conversion Mortgage (HECM) ; and our proprietary HomeSafe reverse mortgage. While each allows you to buy a home that fits your current needs, the HECM has a cap of $765,600 while HomeSafe provides much higher loan amounts up to $3 million.  With HomeSafe, condos valued at $500,000 or more do not require an FHA approval.

*   The borrower must meet all loan obligations, including living in the property as a principal residence and paying property charges including property taxes, fees, hazard insurance. The borrower must maintain the home. If the borrower does not meet these loan obligations, then the loan will need to be repaid.

 

Do you qualify to purchase a home with a reverse mortgage?

  • Must be 62 or older
  • New property must meet outlined requirements; it must be a single-family residence, 2-4 unit property,  townhome, or condo.*
  • New home must be your primary residence.
  • Maintain new property and keep up-to-date on property taxes, insurance, and any HOA fees.

*  For HECM, condos must be approved by HUD. For HomeSafe, condos under 500k must be approved by HUD. Condos above $500k must be approved by FAM.

As the top-rated lender on Consumer Affairs, Finance of America Mortgage is a retirement solutions company dedicated to helping you get to work on your retirement!

 

LET'S HAVE A CONVERSATION ABOUT YOUR RETIREMENT GOALS.