You can purchase a home with the help of Land Home and an FHA Reverse Mortgage!
We have helped two wonderful couples purchase their dream homes this month using FHA Reverse Mortgage. Here are their stories:
One couple had a nice home in Brentwood that they wanted to sell and they wanted to move into our local retirement community Summerset. They had quite a bit of equity in the home that they owned but were concerned about payments in the future and did not know if buying at "their age" of 62 and 72 was a wise idea. Well, we got them in touch with our local lender Nathan Nelson, Senior Mortgage Consultant at Land Home Financial Services, to talk about options: He has this great Purchase Reverse mortgage program that allows a single down payment and no monthly payments for the rest of the homeowners' lives. We then searched and found a home that they love, sold their current home in 5 days, and purchased the new home. They were able to put the rest of the equity of their "old" home in the bank instead of in the new home. They now feel safe and more secure about the future.
The second couple are sisters who lived in two different states, not California. They both decided that it was
a good idea to sell their homes and move to California to be closer to family. We were able to find them a wonderful home in Trilogy that fits their needs. They put a one time down payment into the new home and will not have any more payments for the remainder of their lives. They have the additional funds being invested for future use and income.
The Benefits of a Reverse Mortgage are:
Eliminates mortgage payments
No income or minimum credit score requirement
Purchasers retain the title
All remaining equity does not go to the bank
No pre-payment penalty
Loan is a non-recourse loan
All titleholders must be 62 or over.
The purchased home must be the primary residence.
The purchased property must meet HUD minimum property standards.
Down payment can only come from qualifying sources.
HUD approved counseling session must be completed.
A Reverse Mortgage has always been a great way for people over 62 to tap into their homes equity as a supplemental financial option. Congress has now created an FHA insured Reversed Mortgage Program that will allow seniors to purchase a new home with a SINGLE DOWN PAYMENT and NEVER MAKE A MORTGAGE PAYMENT. Taxes, insurance and any HOA fees will have to be paid.
This article is written by Shannon Coe and first published on November 2011 so some information may be outdated after some time. It is posted as an informational and promotional piece by Shannon Coe and does not necessarily reflect the opinion of the publishers EverythingBrentwood.com.