Financing Your Home Purchase using the Reverse Mortgage to Purchase Option
The Reverse Mortgage (aka HECM - Home Equity Conversion Mortgage) is most commonly used to refinance your existing Vancouver home, allowing home ownership without monthly home loan payments for as long as you have that home as your primary residence. The Reverse Mortgage homeowner does continue paying their property taxes, home insurance, and any applicable HOA dues.
A not so well known feature of the Reverse Mortgage is to use this home loan to purchase your home or condo.
This is becoming a great option at this time for those of us in the Boomer generation to down-size or right-size into their next home, whether it is a SFR type of home or a Condo (condo must be FHA approved); or, a 2-4 Unit property (1 unit must be owner-occupied); and don't want to have all their equity tied up in the home; nor, do they want a monthly mortgage payment.
Here's Vancouver Reverse Mortage Home Loan Officer Mark Eshelman with more information:
How Does the Reverse Mortgage to Purchase Home Loan Work in Vancouver and Clark County?
These are some of the Key Elements of the Reverse Mortgage-to-Purchase Home Loan:
- Age - 62 years or older.
- You may be retired or working.
- Some credit and income qualifications are required but, are typically more lenient than other mortgage programs. Call for details.
- The amount of the "Down-payment" is calculated with a formula that considers the age of the youngest borrower on the loan; the home's sales price or appraised value up to $625,500; and the current Interest rate.
- Eligible properties include: Existing Homes, Modular Homes, FHA eligible Condos, Duplex, Tri-Plex or 4-Plex!
- The Property must be in Good Repair, and must meet FHA Appraisal Guidelines..
- Applicants apply with a knowledgeable and experienced lender of their choice.
- A Reverse Counselling Session is required.
Are There Any Other Important Items to This Loan Program?
Here are a few more items to check off before looking into this loan or at a particular property:
- Must be Owner Occupied as the Primary Residence;
- Reverse Mortgage needs to be paid off within 6-12 months after last borrower moves out of the home permanently; or, is deceased;
- A Home Inspection is Highly Recommended.
If you have an interest in this type of loan and home purchase please give me a call (John) at 360.241.7232.