You can buy a house with a reverse mortgage. A HECM for purchase allows seniors with high home equity but low income to move into new homes that better suit their needs.
Learn the pros and cons of using this loan to purchase a new house.
You can sell a house with a reverse mortgage because you have the title, not the bank.
The process is like other real estate deals, except your lender has more provisions to meet. This is because the loan is increasing rather than decreasing.
With extensions you have up to a year to market and close your home sale.
Who benefits from a reverse mortgage? This may be a good option for borrowers who need money each month and have a lot of equity in their homes.
Banks also benefit, because these are high-profit and low-risk loans for them.
There are good alternatives, and you should consider these before you take out one of these loans on your home.
What type of loan is a reverse mortgage? It takes equity out of your home and loans it to you.
Most loans are government-insured, but there are private companies that have programs for special cases that HUD won’t approve.
HECM offers six payment options. Meet with a financial counselor to decide which is best for you.
How to pay off a reverse mortgage isn’t tricky. You can cancel during the 3-day rescission period.
After that you can make payments, or sell your house to pay off the loan.
If a person dies and you inherit the property you won’t owe more than 95% of the appraised value, even if they owe more than the house is worth.