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Reverse Mortgage for Purchase:
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Reverse Mortgage for purchase enables seniors to purchase a new home using their proceeds from the reverse mortgage. This may allow you to move closer to family or downsize your home to meet your physical or financial needs. Any existing one-to-four unit property where the construction is complete and the property is habitable is eligible for a Reverse Mortgage for purchase.
How does it work?
The current home that you are residing in is the one that the Reverse Mortgage will be taken out on, and it will transfer over to the new home, so to speak. You will use the proceeds from the Reverse Mortgage to purchase a new residence with the following conditions:
- You have to take residence of the new home within 60 days from the closing date for the Reverse Mortgage.
- You may not take another mortgage out to pay for the new home. You can use the proceeds from the reverse mortgage as well as the proceeds from the sale of your existing home to pay for the new home, but no other mortgages are permitted.
How much does it cost?
A Reverse Mortgage for purchase works the same way as a regular Reverse Mortgage reverse mortgage which means all the same fees will be incurred. There are not additional fees for the Reverse Mortgage for purchase though.
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