subject: How to Use Reverse Mortgage for Your Next Home Purchase [print this page] Author: Alvin Clavines Author: Alvin Clavines
In order to sustain financial assistance to seniors and retirees who are in need of options for home mortgages, various government agencies regulated certain legislation to provide necessary alternatives to homebuyers and aid the poor real estate industry. This significant legislation is the Reverse Mortgage for purchasing a home. This kind of mortgage is now becoming very helpful and useful to those who want to have a home and not stay at a nursing home. Using Reverse Mortgage to purchase a home will permit senior citizens not to have monthly mortgage payments. The Federal Housing Administration permits senior citizens to purchase a home with little money down. These programs are all different and do not look at credit in the same manner as a conventional mortgage. Since a new group of citizens are in need of a program that will allow them to have a home with less worry, this program was designed. Another great benefit for those who are eligible for a reverse mortgage for home is that the borrower is not obligated to pay any monthly payments. Senior citizens do not usually have a steady income and mostly retired so if they pay monthly dues, it will be a big burden for them. And because this loan is backed by the government, the possibilities of foreclosure is not possible Senior citizens can purchase a new home because the loan and the interest rate will be paid back. Seniors can get the reverse mortgage loan against the appraised value of the home they want even if the real market value for the home is higher than the given price for them. When this appraised home value is used for reverse mortgage, it eliminates the total down payment. Using reverse mortgage for your next home purchase will allow senior citizens to buy a new, but smaller home that will allow them to be nearer their friends and family or even hobbies. They do not need to sell their old home, but just take their equity little at a time. This equity will go to their new home so the equity is still there. Another advantage of purchasing a new home is that while the owner now owns two homes, the value for both homes increase. They can choose from a single family residence, condo unit, townhouse, manufactured home, or a 2-4 unit multi-family. That is if they are at the minimum age of 62 and have a property as a primary resident. There is no need to have an income or credit score to qualify. They do not even need to think if they had a bad credit score before. The most important requirement that one will need is their age since the older one get, the lesser the down payment that they will receive. Tax deduction is also possible on the Reverse Mortgage. They can pay their new home just like a regular mortgage and pay them monthly if they choose. There is no pressure if they cannot to pay them every month.About the Author:
