Can I use a reverse mortgage to purchase a home?

Yes. A reverse mortgage for purchase works like any other reverse mortgage. The amount you may borrow is based on the lower of the sales price or the appraised value of the home, your age, and the interest rates at the time. The option of using a reverse mortgage could provide an answer if you wish to move to a new location or find a home that better meets your current needs. Your reverse mortgage specialist can explain the details further.

You will need to bring in funds, either from the sale of  a previous residence, gifted monies, or investment or other financial accounts to close the new loan. The amount you will need to bring to closing will be based on the criteria as mentioned above. Ask your specialist for a personalized quote today!

Remember, no monthly mortgage payment for as long as you remain in the home and maintain your property taxes, homeowners insurance and regular property maintenance. If you don’t maintain these items, your reverse mortgage could become due.