Using a Reverse Mortgage to Purchase a Home

Posted by Michael Branson in Buying Houses

A Reverse Mortgage is a national program which typically is offered to homeowners 62 years and older but some private programs have recently been opened to borrowers down to 59 1/2 years old which allows the homeowner access to their equity in the form of cash, monthly income to the homeowner, or a combination of both with the homeowner never making another loan payment for life. The money the homeowner receives is usually tax-free and does not affect Social Security benefits or Medicare (check with your financial adviser for your circumstances). There are very minimal credit requirements and no income requirements to qualify, borrowers can even be in foreclosure and still obtain a reverse mortgage.

Did you know that if you are a senior borrower, aged 62 and over you can use a reverse mortgage to purchase a home as well as just to refinance your existing home? Read the rest of this entry »