Downsize Living Expenses Using Reverse Mortgage for Purchase Program
A new twist with the Reverse Mortgage program is that it is now available to purchase a house. This would generally be for the purpose of downsizing to a smaller, more manageable property such as a condo, 1-floor living, or a 55+ community. Many long-time homeowners would prefer to continue owning their own home in their senior years while having access to their equity for expenses such as health care.” expand on this
The new Federal regulations passed recently and made into law allow American home-owning seniors to do ‘downsizing’ of their home, using the now-popular Reverse Mortgage for Home Purchase option.
The new program of Reverse Mortgage for Purchase is a boon for home-owning seniors. They can now take a reverse mortgage on a part of their equity in the new property for the purpose of moving to into the smaller piece of accommodation or residence. The money for such new purchase of smaller property is hard to come by in these tough economic times, but the reverse mortgage comes to the rescue, allowing the senior access to funds that would not be available otherwise.
Using these funds, the senior home-owner can purchase a smaller, more manageable unit of property like a condo, or opt for 1-floor living, or opt to be with a 55+ community. The money does not need to be repaid until the previous home gets sold but the previous home will be taken possession of, by the reverse mortgage lender.
By opting to move to a smaller piece of property, the senior can save on home owning costs, which usually are associated with the cost of home ownership. It is easier to maintain and upkeep/clean a smaller property like a condominium, than a bigger home. Also, it can be psychologically and morally satisfying to the senior that he or she is now within a community of like-minded people of similar age.
The cash for the purchase of a new smaller home can be difficult to get, especially with a low retirement income or pension and even more difficult during these times of economic hardships. But with a Reverse Mortgage for Home Purchase program, it is all possible.
The home-owning senior only needs to get counseling from an approved reverse mortgage counselor, and meet the minimum age requirements (62 years of age or older). The higher the age of the senior, the higher is the amount that can be eligible to be got through a reverse mortgage of the property. Reverse mortgage lenders are approved by the Government, and so there is nothing to fear.
