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.