subject: When to Buy a Home with Reverse Mortgage? [print this page] When to Buy a Home with Reverse Mortgage?
Reverse mortgages are handy options for the senior citizens to live in their homes peacefully but also help you to buy a second home as well. In case you are planning to move, reverse mortgage could be a good choice. No matter whether you are planning to shift to bigger and better home or moving closer to your family, selling the home will be the only option for many since getting a loan for the aged will be difficult.
Whether you like it or not, the fact is that even if you don't have any bad credit., without a credit score, it is impossible to get a loan. Though it might seem unfair for many, this fact will be a hindrance for many in owning a home. However the advantage is that credit is not a requirement for a reverse mortgage. The vital parameters that are taken into account will be your age and equity position. So, if you are above 62 years of age and have enough money to make the down payment, you could be living in your second home soon.
For those who have enough equity on the home that they are living in a reverse mortgage on it could be the best choice to buy a second home. This would mean that you can own s many as two homes and not to have to make a payment to either one. Buying a second house does not mean that you need to shell out a huge amount of cash from your reserve.
A reverse mortgage can be done on your first house and the proceeds of this deal will finance the second home. Even if you don't have enough cash to pay for it, you might still have sufficient funds to put a large down payment, which would downsize the monthly instilments into easy small payments. However, you need to live in the home with the reverse mortgage at least six months and one day of every year.
In case you are contemplating a reverse mortgage, it will be a good idea to avail a mortgage advice service to choose the best possible deals.
