Can you buy a home with a Reverse Mortgage loan?*

Yes you can! You may be able to depending on your situation and there are some details listed below from the US Department of Housing and Urban Development (HUD) regarding this process.

Or can you get a Reverse Mortgage on a manufactured home?

You may be able to if the manufactured home was built prior to June 15, 1976 and meets additional eligibility requirements. Contact a Fairway Independent Mortgage Corporation Reverse Mortgage Planner for more information. Or click on the link to get more information from a Reverse Mortgage Specialist: HECM

*The required down payment on your new home is determined on a number of factors, including your age (or eligible non-borrowing spouse’s age, if applicable); current interest rates; and the lesser of the home’s appraised value or purchase price.

Here are some facts on the new** Reverse Mortgage called HECM’s which are Home Equity Conversion Mortgages:

The only reverse mortgage loan insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage (HECM), and is only available through an FHA-approved lender, such as Fairway Independent Mortgage Corporation. If you are a homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the home, you may qualify for the HECM product. To participate in FHA’s HECM program. The HECM allows you to increase your cash flow while tapping into a portion of your homes equity. The FHA’s reverse mortgage program (HECM), which enables you to withdraw a portion of your home’s equity. The amount that will be available for withdrawal varies by borrower and depends on:

Age of the youngest borrower or eligible non-borrowing spouse;

Current interest rate; and

The value of your home.

If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you may be eligible to borrow. .

You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing. A HECM for Purchase Loan (H4P) combines a reverse mortgage loan with the equity from the sale of your previous home – or from other savings and assets – to buy your next primary home in a single transaction. Regardless of what happens to your home’s value or how long you live in the home, you only make one down payment towards the purchase. However, you must continue to pay taxes and insurance (and homeowner association dues if applicable), and maintain the home.

To learn more about how to use a HECM to purchase your next home please click here and a Reverse Mortgage Planner professional will assist you.

Reverse Mortgage Loan with Bad Credit

Most, but not all, reverse mortgages today are federally insured through the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) Program. This advertisement talks about HECM loans only.

Unanticipated situations like a serious illness, job loss, or an accident can cause bad credit. An excellent credit score is not required for a reverse mortgage loan. However, some income and credit qualifications apply to ensure you have the ability to pay taxes and insurance, and to maintain the home; some property qualifications also apply.

With the new* changes to the FHA insured Home Equity Conversion Mortgage (HECM) more seniors 62 years of age or older are using this mortgage to increase their cash flow in retirement and better their lives in retirement. If you are not aware of the major changes check out the HUD site at

*New represents when the Life Expectancy Set Aside (LESA) was put in place in 2015

Educate yourself on the information you need to make an informed decision. Use the link above to get the facts. You can work with a Reverse Mortgage Planner to analyze your unique situation and see if a HECM is right for you. It’s simple, just use the HECM link to send your HECM assessment and schedule a call.

Are there any costs with a reverse mortgage loan?

Processing fees, commonly called closing costs are necessary to process the loan. Closing costs vary from state to state. It may be possible for lenders to “roll the closing costs” into the mortgage meaning the closing costs may be financed into the loan amount.

How much equity would i need to have a reverse mortgage

Generally, You generally need a lot of equity to make a reverse mortgage loan work. Although there are no specific dollar limits, the best candidates for adverse mortgages have either paid their homes off entirely or at least 50%. If you do have an existing traditional mortgage, you may be able to refinance into a reverse mortgage. The new HECM will pay off the existing bank loan and incorporates the balance of your new loan. Potential benefits from using a reverse mortgage include supplementing your cash flow during retirement and paying for healthcare expenses. new

The amount of equity you will need for a Home Equity Conversion Mortgage (HECM) is at least 50%. There are other factors like age of the person and assessed home value, which will affect the amount of equity you can pull out. If you want to find out more please click this link for HECM and a Fairway Independent Mortgage Corporation Reverse Mortgage Planner will gather some information and schedule a call to answer your questions.