Learn About the HECM Reverse Mortgage buy
As of early 2009, seniors that are looking to buy a new home can use a Reverse Mortgage for the financing. A federally insured “buy Reverse Mortgage” is a revolutionary way for seniors to buy Real Estate. Recent changes in legislation allow for seniors to buy a home with NO monthly mortgage payments.
Eligible character types include: Single family residence, Condo, Townhomes, 1-4 Units Multi-Family, and Manufactured Homes (meeting strict guidelines). With the addition of the HECM buy program there a great number of opportunities obtainable to help seniors, 62 years of age, who would like to buy a home as their dominant residence without dealing with a monthly payment. However, unlike the HECM Refinance program, there are some very different requirements that must be addressed when presenting and originating this product.
First, here is the address the differences between a HECM Refinance and a HECM buy:
* The senior will be required to provide the remaining cost of the home at closing, and these funds will need to be verified so the transaction can be fully proven and meet all of HUD’s guidelines.
First, the Borrower may only use their own money or proceeds from sale of assets, such as another home or a mutual fund. in addition, the borrower can use his savings or retirement account as the provider of the necessary funds. However, there are restrictions on gifts, personal loans, Loan Discount Points, Interest Rate Buy Downs, Closing cost assistance, builder incentives, Seller contributions or seller financing, credit card advances, secured or unsecured loans from another asset (car, home equity, etc.)
Some other requirements for buy of a Reverse Mortgage home include the requirement that the borrower must occupy the character within 60 days of closing. Newly constructed similarities must have Certificate of Occupancy prior to the date of the application for the Reverse Mortgage. HECM buy transactions do not have a three day (3) rescission period.
With the bad economy right now and the Credit Crisis and the Mortgage Crisis all together, the Reverse Mortgage is a safe and obtain way to buy a new home without affecting your assets, income, or investments. It is a safe way to ensure that when you buy a home, you will not have to make payments on a new mortgage or worry about default or foreclosure so that you can enjoy your well-earned retirement.