Reverse Mortgage Purchase allows seniors at least 62 years of age to purchase a home using a reverse mortgage.
We have a Reverse Mortgage for purchase (slide show downloads) and it explains everything from the clients, the realtors, and the financial planners view on how the Reverse Mortgage purchase works. We do offer a 3 hour Reverse Mortgage purchase class that is worth 3 CE hours. Also for any Realtors that just want the nuts and bolts, I offer a short Reverse Mortgage purchase presentation.
This can be a valuable option for seniors who need a new home that better meets their physical needs, or who wish to move closer to family members. Since this is a reverse mortgage product, monthly payments are not made on the new house. Read Washington Post story.
This can be a way to get your buyer the perfect house and they have money left over. We have this down to an art, and close in under 1 month! Scott Underwood will meet with Realtors, clients, and other interested parties. My office is in Hoover / Birmingham in Eagle Point, but I still make house calls to most of Central and North Alabama with a Huntsville, Alabama office as well.
See FOX NEWS video on how people are using this. Click Here.
Unlike the traditional reverse mortgage, Reverse Mortgage purchase loans require a down payment, which you must pay with your own cash. Typically the down payment required is based on the borrower’s age. The older the borrower is, the lower the down payment requirement will be. Reverse Mortgage Purchase are subject to the same guidelines as a standard Reverse Mortgage (HECM) loan.
Realtors – show clients how to purchase and keep money in the retirement fund! – a Reverse Mortgage used to buy a home. You may think its way to hard and takes too long, but we can close just like a traditional loan in a month! Scott Underwood, Reverse Mortgage Alabama, and New South Mortgage LLC is a direct lender so we do everything in Alabama and can complete these loan in a month!!
A new method to sell a house, and leave your buyer with money to live on, or to help achieve the house they really want to buy?
Reverse Mortgage Purchase is a highly successful program and provides a wonderful opportunity to people who are 62 years or older to move to a home more suitable for aging. Perhaps living closer to family members and services or a single level home or an active adult community will be the best choice!
The reverse mortgage purchase option allows you to minimize your cash requirement (and keep more money in your retirement savings), get more home for your money and have no mortgage payments to make. Why take money from taxable retirement income when you can get down payment money from the reverse mortgage and not have to pay income taxes on it? Keep your money in your investments and let it continue to grow and maximize your funds.
How does the reverse mortgage purchase program work? The money sources for your new home purchase comes from your down payment (money you have in investments or bank accounts, or from the proceeds of the sale of your residence) and funds from the reverse mortgage. The reverse mortgage agreement is that you pay the bank or lender back after you leave your home permanently. Therefore there are no monthly payments during the time you occupy your home. Based on age of the youngest borrower, the current expected interest rate and purchase price of your new home, we calculate your down payment.
You can live in your home as long as you like. There are no payments required until the last homeowner leaves the home permanently. You must occupy your new home within sixty days of closing!
It is very important you understand that when you purchase a home using a reverse mortgage, it must by your primary residence.
Reverse Mortgage Purchase Transactions Are Different! Your Real Estate Agent needs to be aware of what is included in the original offer to purchase. Documents are date sensitive so you must do it right from the start!
There are additional forms needed when making an offer using a reverse mortgage as financing. Make sure you have the proper forms in your offer package. I will analyze your proposed transaction before making an offer.
You, your agents, the people trying to sell their home all rely on a proper determination of approval from the beginning. Critical time and money can be wasted with a hasty upfront evaluation. So if you are an agent or a homeowner, take responsibility right now to learn how to create a successful purchase transaction and have the wonderful benefits of not making mortgage payments on your new home.
It’s important to understand the guidelines for the HECM for Purchase Program.
There are no seller concessions and sellers are limited on fees and closing costs they are allowed pay. This is why it is important to let me review the contract before presenting to the seller. Reverse Mortgage Counseling must be completed prior to opening escrow or submitting an application!
The seller must agree to complete required repairs prior to closing and included in contract.
The purchase agreement must state that buyer will pay for both lenders title policy and owner’s title policy. The buyer must pay for appraisal and if a home inspection or home warranty is requested, the buyer must also pay those costs.
We are a direct lender for the FHA Reverse Mortgage Purchase and can close this program faster than anyone! Realtors and home buyers call me, Scott Underwood 205-908-2993, 256-677-9767, or 251-333-4200 for more information or find out how to start.