Premier Reverse Mortgage

Who Should Consider Using a HECM for Purchase Loan?

We are of the opinion that a reverse mortgage purchase loan is an appropriate financial tool for a wide variety of older Americans who can afford to put roughly 50-60% down. The first category of prospective borrower is one who may be looking at a conventional mortgage to finance the purchase.

How Do I Know If I Qualify?

To be eligible for a reverse mortgage purchase, you must be 62 years old at the time of closing. A couple can be eligible when one spouse is at least 62. The credit and income qualifications can be found here. If you are attempting to buy your next home before selling your existing one, you’ll have to qualify to carry both.

Where Can The Down Payment Funds Come From?

The most common way for someone to use a reverse mortgage purchase loan is to sell their previous residence and use the proceeds as the down payment for the new home. The trick is getting the timing right with the previous sale versus the new purchase, so you aren’t homeless for a period of time.

What Are The Closing Costs?

The two largest closing costs are the upfront FHA mortgage insurance premium and the origination fee. The remaining fees can vary greatly due to differences between states, contract negotiations, property specific items, etc. It’s best to contact us for a detailed estimate if you are getting ready to make an offer on a property.

What Are The Next Steps?

Depending on the state of the market, you might need to focus on selling your existing home before looking into acquiring your next one. There are time periods where homes sell immediately and time periods when they take a year to sell. It also depends on where you live. We’ll focus on the steps you take once you are far along in the process and expect an offer soon.