ANOTHER GOOD USE OF A HOME EQUITY CONVERSION MORTGAGE, aka “reverse mortgage”
Kathy and Bill, now both in their 80s, had lived in their two-story house for over 25 years when Bill fell and severely injured his hip which made getting up and down stairs very difficult. So, they decided to sell their home and buy a single-story home that better fit their current needs. However, in researching the market, they discovered that the price of the home they wanted was more expensive than the amount of equity they had compiled in their current residence, yet they didn’t want to take out a new forward mortgage because the required monthly payments would put a strain on their fixed income.
The solution, then, was to take the equity that they had accumulated when they sold their current home and combine it with a REVERSE MORTGAGE which together allowed this senior couple to buy the home they wanted and NOT BE REQUIRED TO MAKE MONTHLY MORTGAGE INSTALLMENTS. It was a win/win.
Whether by choice or circumstance, if you’re a senior and you find yourself in a position of wanting or needing to move but can’t find an acceptable home in your price range for the cash you have available, consider employing the buying power of a reverse mortgage to get you into a home that better fits your current circumstances. Better still, a HECM loan's qualification requirements are easier than a traditional forward mortgage because it’s designed specifically with fixed-income senior borrowers in mind. In general, you need to be 62 years old or older, have reasonably good (not perfect) credit, and demonstrate that you have the ability to pay your real estate taxes, homeowners insurance, and any HOA dues if applicable.
ONE LAST NOTE: If you’re a realtor reading this, I encourage you to take a minute to consider what benefits a “reverse mortgage for purchase” can do to assist your senior homebuyers who don’t want a new mortgage at this stage in their lives but yet don’t have enough cash to pay for today’s housing.
For more information on HECMs (aka reverse mortgages), you can either go to my website at www.richardcarringtonok.com, email me at info@richardcarringtonok.com, or give me a call or text me for an appointment to discuss whether an HECM is right for you at 405-641-6886.
Richard Carrington, NMLS#1002271
Prosperity Mortgage, LLC – NMLS#1842936