Reverse for Purchase
WHAT IS REVERSE FOR PURCHASE?
A Reverse for Purchase is a government approved program for seniors 62 years of age or better. It allows you to combine your down payment with a reverse mortgage and purchase a new home without having to make any monthly principal and interest mortgage payments.
Who can qualify?
- Age 62 or better
- Adequate cash down payment
- Completed Reverse Mortgage Counseling
What are allowable funds for a down payment?
Cash from the sale of your home, borrower savings, retirement funds and gift funds are all acceptable for a down payment.
What does a Reverse for Purchase not allow?
- No seller or lender concessions of any kind
- No personal loans or cash advances
- No bridge loans
- No subordinate financing
- Not for purchase of second home
- A Reverse for Purchase will not affect Social Security or Medicare benefits
- The amount that you qualify for is based on age, home value, and current interest rates
- Both birthdates must be used for joint applicants- calculated based on the age of the youngest borrower
- Reverse for Purchase is NOT subject to federal income taxes*
- Reverse for Purchase qualification may be subject to credit, income or employment
- FHA Program
*Please consult your tax advisor regarding tax implications
Additional program information: Available for Seniors age 62 and older. Home must be occupied as principal residence, required taxes and insurance paid and make all necessary repairs to avoid deterioration of the property. When the house is sold, the loan, along with any interest and fees, are paid to the lender. Any remaining equity belongs to the heirs. This website has not been reviewed, approved or issued by HUD, FHA or any other governmental agency