The right way to Get a Home with a Reverse Mortgage in California

by Robert Krepps on February 25, 2012

Most people think that you have to have a home and have it paid off to have a reverse mortgage, however one of the lesser known uses for a reverse mortgage is that it can be used to buy a home. This option has only been available thru the HECM (home equity conversion mortgage) for one or two years now.

Often we see that a senior may need to downsize; you have raised your children in a massive home, but it is becoming to be a burden to take care of the grass, and to scrub such a large place. We have helped seniors move into condos or a 55 and older community that might be more the correct size and comfort level for you.

Another great option with the HECM for sale is to keep the “family” home and hire it out for cashflow or investment purposes and with the reverse mortgage purchase a smaller, more maintenance free home. Oftentimes homes are selling for slightly less than a builder can actually build it, implying that it could be a wonderful time to get a second home, so that once the market starts to rebound there are two homes gaining equity. Many Realtors are starting to grasp the worth in presenting this option to their mature clientele also.

A reverse mortgage for buying is very straightforward, all the clients must be 62 or older before the close of the loan process. The home must be in proper condition, no paint flaking, correct roof, handrails for steps, for example. The customers must make a down payment of at most 50% down as low as possible of almost 20% depending on the age.

The purchase agreement must be turned in to the reverse mortgage bank along with the regular bureaucracy. Before having a look at any houses you should be pre-qualified with your reverse mortgage to see the price ranges of houses that make sense for you. There aren't many banks that have essentially closed a reverse mortgage for buying but at Security 1 lending we have closed many reverse mortgage for purchase transactions.

Security 1 Lending provides reverse mortgages in Southern California cities like Glendale, Pasadena, Sherman Oaks, Walnut, Culver City, and Torrance. If you want to get rather more info on how to buy a home with a reverse mortgage, be at liberty to contact Robert Krepps at www.funds4seniors.com or 877-567-7476.

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