| Reverse Mortgage – Buying with No Payments | | | | |
| | | | | - The same qualifying applies – no credit |
| | | | | requirements and no income requirements. The |
| | | | | only difference is that thebuyer does have to verify |
| | | | | that they have the down payment. |
| | | | | |
| Rita Geraldson woke up every morning, for years, | | | | - Just like with a regular reverse mortgage, the buyer |
| wishing she could move - closer to her daughter and | | | | has |
| grandchildren. | | | | To occupy the property as their main residence. |
| Her problem: Moving to the home she wanted | | | | |
| meant starting mortgage payments again – | | | | |
| something she just wasn’t willing to do. | | | | - The same safeguards apply – as long as you live |
| | | | | in thehome, you don’t have to make any |
| Then she read an article. It actually changed her | | | | payments. All you have to pay are the taxes, |
| life. “I didn’t believe it a first,” she said. | | | | insurance, and maintenanceof the property. |
| “I had heard about people getting a reverse | | | | |
| mortgage, but I never knew you could use them to | | | | |
| buy a house.” The article explained that just like | | | | To find out how much you can qualify for, all that’s |
| a refinance, buyers could use a reverse mortgage to | | | | needed is your date of birth, the zip code where |
| purchase a home. | | | | you’re buying, and the possible purchase price of |
| | | | | the property. |
| Within four months, Rita was entertaining her | | | | |
| grandchildren at her new home – a home with NO | | | | The program, released in October of 2008, is |
| house payments. | | | | rapidly gaining |
| | | | | popularity. |
| As with Rita, many retirees would like to relocate, but | | | | |
| they don’t want to take on a mortgage payment. | | | | Even those who can afford to pay all cash |
| If they can’t pay all cash for the home they want | | | | are considering |
| to live in, they have to borrow money and make | | | | this option. By not using all their cash, |
| payments - something people in retirement don’t | | | | they’re able to |
| want to be burdened with. | | | | keep other options open. |
| | | | | |
| Using a reverse mortgage to purchase, they don’t | | | | “I’ve got investments, and other |
| have to pay all cash for the home, and they don’t | | | | goals. I don’t want all |
| have to make payments, as long as they live in the | | | | my money tied up in a house – especially |
| house. | | | | at this point in |
| | | | | Life.” Said Fred Murada, a retiree who |
| What are the particulars of the reverse mortgage to | | | | used a reverse |
| purchase program? | | | | mortgage to purchase in Oxnard, CA. |