Tag: reverse mortgage for purchase

Marisol Senior Living Community in Loveland, Colorado

Posted on by janjordan

Marisol Senior Living Loveland Colorado - Reverse MortgageI recently had the honor of contributing to a piece in “At Home“, the real estate insert included in Loveland’s Reporter Herald newspaper.  This piece highlighted a beautiful senior community called Marisol Senior Living located in south-west Loveland and I was pleased to discuss the reverse mortgage options available.

 

About Marisol Senior Living

 

Marisol is a 35 acre living community designed for seniors 55 and older.  Housing options within the community include apartments, duplexes, and single family homes.  With varied programs, a fitness center, free continental breakfast, bike trails and much more, this community is all inclusive for those wishing to socialize and stay busy year round.  In addition, northern Colorado has long been considered one of the best places to retire in the nation – making Marisol even more attractive.

 

Using Reverse Mortgage to Purchase

 

Conventional financing is often the first stop when considering purchasing a new home, but at Marisol, reverse mortgage for purchase options are available for seniors 62 and older, with no income and credit requirements.  Often times seniors will have substantial equity in their current home, but be leery of taking out a new loan and managing monthly mortgage payments, thus they stay in a home that no longer meets their needs.  A reverse mortgage can be a great way to get into a new home without these worries.  When purchasing a new home with reverse mortgage the down payment is determined based on the purchaser’s age and the value of the home and all loans are backed by the FHA.  Learn more about how reverse mortgage can be used to purchase a home here.

 

For more information about obtaining a reverse mortgage in the Marisol Community or elsewhere, please don’t hesitate to contact me at (970) 646-8908 or via email here.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado as well as Cheyenne and Laramie, Wyoming.

Reverse Mortgage for Purchase by the Numbers

Posted on by janjordan

Reverse Mortgage for Purchase Loveland Fort Collins Greeley ColoradoThe Reverse Mortgage for Purchase product allows seniors 62 years and older to use a reverse mortgage to purchase a home all in one transaction.  By utilizing this product, along with a down payment, older Americans can fulfill their dreams of living closer to family, move to a senior community, downsize or upsize without a monthly mortgage payment.

 

With minimal credit and income requirements, many individuals are able to take advantage of this government insured program.  Eligible properties include existing single family homes and FHA approved condominiums.

 

Here is an example of how the program works:

 

Rich and Carole Swartz want to sell their home and purchase a new home, they are 75 years old.  They sell their existing home for $400,000 and use $100,000 of the proceeds to pay off their existing mortgage.  That leaves them with $300,000 cash from the sale.

 

Now assume they want to downsize into a home that costs $300,000.  Reverse mortgage proceeds would be $200,000 and the Swartz’s would need to contribute $100,000, leaving them with $200,000 after the purchase.

 
But what if they want to upsize to a home valued at $500,000?  Reverse mortgage proceeds in this scenario would be $334,000 and the Swartz’s would be required to pay $166,000 leaving them with $134,000 cash after the purchase.

 

Either situation, they now live now live in their new home, free of a monthly mortgage payment, and have cash left over from the sale of their previous home.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado as well as Cheyenne and Laramie, Wyoming.  

FAQ’s about Reverse Mortgage for Purchase

Posted on by janjordan

reverse mortgage colorado fort collins loveland

 

In a recent blog article, I discussed the various options to use reverse mortgage to purchase a home.  One of those options is the Reverse Mortgage for Purchase program (aka HECM for Purchase).  This is an excellent option to acquire a home in Fort Collins, Loveland or Greeley, Colorado – and offers flexible options for varying situations.

 

In this article I’m going to answer some frequently asked questions regarding this program.

What is needed to qualify for a Reverse Mortgage for Purchase loan?

  • you must be age 62 or older (each borrower on title must meet this criteria, although others residing in home do not)
  • the home you are purchasing must be your new primary residence
  • credit and income are irrelevant
  • you must have your “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.

Who owns the home that I am purchasing?

 

As the borrower and homeowner, you will always retain the title to the home, just like any other type of home loan.

What will my personal ongoing obligations be after purchasing a home?

 

It’s very similar to if you owned your home free and clear – you will NOT have a monthly mortgage payment.  But as the homeowner, you will be responsible for paying property taxes, home owner’s insurance, HOA fees when applicable, and basic upkeep including home maintenance and utility payments.

When will the loan become due and payable?

 

With a Reverse Mortgage for Purchase the loan does not reach “maturity” until:

  • the last remaining borrower passes away
  • the homeowner sells the home
  • the last remaining borrower leaves the home for 12 consecutive months due to illness
  • the homeowner defaults on property taxes or insurance

Will I need to sell my my current home residence to qualify?

 

Simply put, no. As long as the loan on your current residence is not an FHA loan and your required investment comes from a HUD allowable source, you can keep your current residence – although it will need to be your primary residence. Your lender will ensure you are financially stable enough to support the ongoing obligations on all properties you own. If you decide to keep your current residence as an investment, rental, or vacation property – or you are awaiting the sale of home, it is rarely a problem.

What types of properties can I purchase?

 

Single family homes, town homes, and FHA approved condos are all eligible properties. The home being purchased will need to be the buyer’s primary residence.

Can I use the loan to build a new home?

 

These loans cannot be used as construction loans. Homes must have a Certificate of Occupancy issued before a loan application can be started

How is the “Required Investment” amount determined?

 

The “required investment” or down payment is determined by a calculation set by HUD based on:

  • The lesser of the sale price or appraised value
  • The age of the youngest of the borrowers
  • The current expected interest rate

What may disqualify me from a Reverse Mortgage for Purchase loan?

  • Foreclosures within the past 3 years.
  • Unresolved bankruptcy
  • Unpaid Federal obligations – i.e. federal taxes, defaults on prior government backed loans (such as student loans or government backed mortgages)
  • Income too low to support multiple properties
  • Unpaid judgments or tax liens

What is the HUD required “Reverse Mortgage Counseling”?

 

Prior to being approved for a reverse mortgage, HUD’s Federal Housing Administration (FHA) requires each borrow to participate in a counseling session with an approved agency. These not-for-profit agencies are funded by the federal government and work closely with both the FHA and lenders to ensure a smooth process.  The goal of this session is not to steer a potential borrower in one direction or another, but to make sure they clearly understand all aspects of a reverse mortgage.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, 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.