Did you know that senior borrowers can use a FHA reverse mortgage to purchase a home, and as a result, have no monthly mortgage payments?
For example, a 71-year old person could buy a home for $500,000, and be eligible for a $326,073 FHA HECM reverse mortgage. Their down payment would be $173,927, or approximately 35%.
Here is the link to the reverse-mortgage calculator:
This is an excellent alternative for seniors who are downsizing. They can pocket more of the proceeds from the sale of their previous home, and have ZERO house payment on the new home.
The Eligibility Requirements
- 62 years of age or older
- Primary residence only
- No delinquencies on any federal debt, suspensions, debarments, or excluded participation from FHA programs
- Completion of HECM counseling
In 2011, the loan limit will be $417,000. Buyers are still responsible for property taxes, insurance, and HOA fees, plus maintenance. Here is the link to the FHA HECM reverse mortgage website.