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.
Reverse mortgage. That’s sad.
I couldn’t find the video, but all this rain makes me wonder about that scam flip from last year (?) where the living room was sunk below grade and showed extensive water damage. Jim opened up a window seat and there was a water line and grass growing in it…..
I’d love to know what that living room looks like after 5 inches of rain the in the past 5 days…
Expanding on Art Eclectic comments ~
Jim, remember that buyer who bought his first home that I once rented on the CA Central Coast that had flooded in 2005 because of cracks in the foundation? A year ago, I tried to talk to him about the history while it was in escrow, but I got sick and he moved in before I could.
It was a REO; and his friends told him the foundation cracks were “fixed”. The contractor had built the first eight homes of that subdivision with a foundation of Quick Set cement!
Santa Barbara County Building Department shut down the job, but these eight homes were later completed with the same cracked foundations. The developer eventually went bankrupt as the eight original homeowners brought suit against him–and won.
My town had six inches of rain in the past five days! (Santa Barbara had 12 inches.) With all that rain, I’m thinking so much about that first-time homeowner–a really nice, young guy.
Last year, I told him to sue the listing agent as I’m sure he knew the history of that home. (It was common knowledge in my town of 5,000). But I never heard if he did. Buyer beware, eh?