Reverse mortgages have helped seniors remain in their homes for many years now. But do you know that you could buy your next home with one? You may even be able to buy a second home with one. Let us look at a few reasons someone would wish to purchase a new home.
You need to move If you are thinking of downsizing or moving nearer to your family, or services like medical, selling your home could be in your future. Because numerous seniors have no credit, getting a loan for your new home could be hard.
It doesn’t appear fair, that after you have succeeded to the point of not needing or using credit, that you will be penalized for the lack of credit. But trust me; it is difficult to get a loan when you do not have a credit score, even if you do not have any bad credit.
The good news is that credit is not a requirement for a reverse mortgage. Your age and equity position are what they are concerned about. So with sufficient money down and being at the least 62 years old, you may be living in your next home payment free.
You need to buy a second home Buying a second home is possible with a reverse mortgage. I know you are thinking, but it must be your primary residence and you would be correct in saying that. But if you’ve sufficient equity in your home that you are living in, doing a reverse mortgage on it and utilizing the proceeds to purchase the second home is what I’m talking about. You could actually own 2 homes and not need to make a payment on either one.
Let us take an example I have seen work many times. You own a home free and clear, however you like to get down to a warmer, dryer state in the winter. If you do this you know you’re known as a snowbird in numerous parts of the country.
Have you considered purchasing a home in your winter State, but did not wish to have payments or maybe did not feel comfortable in putting down so much money and leaving your reserve accounts low? Well the solution is doing a reverse mortgage on your primary residence and using the proceeds to buy the winter home. Even if you do not have enough to pay cash for it, you might have enough to put a large down payment leaving you with a really small monthly payment.
Allow me to clarify one thing. You need to live in the home with the reverse mortgage at the least 6 months and one day of every year. It needs to be your primary residence. Apart from that, the money is yours and you can do with it as you please.
We have just covered the ways to buy a home with a reverse mortgage. This idea is gaining popularity as the economy is getting tougher. We see that numerous retirees would rather keep their money in the checking account available for emergencies and necessary expenses.
If you want more information on reverse mortgage cons, don’t read just rehashed articles online to avoid getting ripped off. Go here: Reverse Mortgage Cons
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