Most people don’t know that you can purchase a home with a reverse mortgage loan. Most people think it is only for those that own a home and to be used for pulling equity out of your existing home.
When purchasing a home with a reverse mortgage loan, there is a down payment required.
One of the top reasons why seniors get a reverse mortgage loan is repayment is deferred until the borrower dies, sells the home, moves out of the house, or defaults on other obligations such as insurance payments or taxes.
Payments for property taxes, home-owners insurance and maintenance costs are required to be paid. If they are not paid, you can lose your home to foreclosure.
Using a reverse mortgage loan to purchase a home allows you to have extra monthly cash flow for your other necessities of life and to enjoy your retirement years.
Disclaimer: “These materials are not from HUD or FHA and were not approved by HUD or a government agency.” (ML 2014-10).