Reverse mortgage for purchase is a popular option for seniors wishing to purchase a home and live mortgage payment free, just as they would with a traditional reverse mortgage. This program has been a wonderful tool used by homeowners in Northern Colorado, including Longmont, Fort Collins, Loveland and Greeley.
Here are few basics to the reverse mortgage for purchase program:
- The purchaser must be age 62 or older (each borrower on title must meet this criteria, although others residing in home do not)
- The home being purchased must be the new primary residence
- Credit and income are irrelevant
- The purchaser must have the “required investment” (down payment) from a HUD allowable source. The funds cannot be borrowed. The required investment can come from the sale of a currently owned asset or money you have had for at least 90 days.
For more detailed information about reverse mortgage for purchase, click here.
The required investment (or down payment) changes based on the age of the homeowner and the value of the home they are purchasing. The following table is an illustrative guide to required down payments.
Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Longmont, Greeley, and Front Range areas of Colorado as well as Cheyenne and Laramie, Wyoming. Click here to contact Jan and learn if reverse mortgage is right for you.