Reverse Mortgage for Purchase

Purchase your next home without having a required monthly mortgage payment^*

Reverse mortgage for purchase is a great alternative to a traditional mortgage for homebuyers who are 62 or older.  It provides them with additional strategies to achieve their goals.  These homebuyers may plan to downsize, upsize or right-size.  They may want to move near their family or into a low maintenance community, or they are looking for a home that is a better fit for their physical needs.

The reverse mortgage for purchase allows seniors 62+ to buy a new primary residence using loan proceeds from the reverse mortgage along with a one-time equity contribution from the borrower. 

Reverse Mortgage for Purchase is for homebuyers who:

• wan to purchase their home without having a required monthly mortgage payment^*
• want to increase their purchasing power
• want to preserve some of the proceeds from the sale of their home for retirement savings
• live on a fixed income

Benefits of the Reverse Mortgage for Purchase Loan:

• no required monthly mortgage payments
• non-recourse lending - borrower can never owe more than the value of the home at the time of repayment
• no credit score required, though borrowers must have satisfactory credit and payment history for property charges
• no employment required, though borrower must meet the residual income criteria

Buyer and Seller Responsibilities:

• the youngest borrower must be 62 or older
• the property must be purchased as the Buyer's primary residence
• Buyer must occupy the property within 60 days of closing
• only one mortgage is allowed on title (no second liens or mechanics liens are allowed)
• Buyer and Seller must be uninterested parties (arms-length transaction)
• Seller must complete and pay for any required repairs prior to closing
• Seller may purchase a Home Warranty for the Buyer
• resale may not occur within 90 days of the last sale
• Power of Attorney or guardianship is not allowed

Downsizing with a Reverse Mortgage Purchase Loan

Example: A 70-year old couple sell their home for $500,000 and purchase a new home for $350,000.  They can pay cash, but want to retain some of the proceeds from the sale of their departure home and increase liquidity by not having to make monthly mortgage payments.

Upsizing with a Reverse Mortgage Purchase Loan

Example: A 70-year old couple sell their home for $500,000 and purchase a new home for $650,000.  They do not want any monthly mortgage payments.

^*The borrower must meet all loan obligations, including living in the property as the principal residence and paying all property charges, including property taxes, home and flood insurance and homeowners association dues, as applicable.  The borrower must maintain the home. If the borrower does not meet these obligations, then the loan will need to be repaid.