Can I Use a Reverse Mortgage Loan To Buy a Home?
You Sure Can! It's Called a Reverse Purchase Mortgage
With as little as 50% of a purchase price*, qualifying seniors can utilize a Reverse Purchase Mortgage, (or “Home Equity Conversion Mortgage (HECM) for Purchase” loan), which allows people 62 and older to purchase a new principal residence with HECM loan proceeds.
A Reverse Purchase Mortgage (HECM for Purchase) requires that you be 62 years of age or older and that the home you are purchasing be your primary residence. You will need to have cash available for the down payment, which can be as little as 50% of a home’s purchase price, but like all reverse mortgage loans, you will not have to make monthly payments on the HECM for Purchase loan. Imagine paying 50 cents on the dollar to buy a home, and never having a mortgage payment! Naturally, you will still need to fulfill the reverse mortgage requirements, such as living in the home as your principal residence, keeping the home in good condition, and paying your property taxes and homeowners/flood insurance premiums on time; these are normal elements of a reverse mortgage.
The Secret to a Successful Reverse Purchase Mortgage
The secret to a successful reverse purchase mortgage is simple: make sure you are working with a hands-on, local reverse mortgage firm with actual experience closing Reverse Purchase loans specifically in your area. It is quite difficult to manage a purchase transaction from 3000 miles away, so why even tempt fate with a West Coast reverse mortgage company that knows very little about Florida real estate and the nuances that come with it? Florida’s Best Reverse Mortgage Company not only has the experience with Reverse Purchase Mortgages, we have the track record to prove it!
When you secure a pre-approval with Florida’s Best, you are also securing a Licensed Reverse Mortgage Loan Officer who is local to Florida, will meet you at your home or one of our statewide offices to pre-qualify, collect documents, and take your application, as well as being present at the closing itself. We will work hand in glove with your realty team and can handle coordination of your transaction to ensure a smooth and timely closing. You will be explained every single page of what you are signing and why, and will be treated face-to-face with dignity, respect, and confidentiality. We have no peers when it comes to the service we provide and you can expect; we don’t have to pay millions to celebrity endorsements either, so we can offer more competitive rates and deals than our west coast reverse friends (looking at you Tom Selleck!).
It's important to know that we will be with you every step of the way, from the application to your closing, explaining the information to you as we move forward so you know exactly where you are in the loan & home buying process. We ARE the local & trusted experts and we deliver!
"That sounds amazing! How do I learn more?"
Easy! Pick up the phone and call us at 844-352-2378 or email and let's discuss your unique situation to see how Florida’s Best Reverse Mortgage Company can be of service to you.
*The percentage of down payment fluctuates and is determined by current interest rates, lender principle limits, and HUD guidelines; it can and does change depending on market conditions.