Most people have heard of reverse mortgages. A reverse mortgage refinance is an FHA mortgage available to people who are at least 62 years old. The program allows folks with enough equity in their homes to stop making mortgage payments and remain in the home until they die. In many cases a reverse mortgage refinance can be an excellent option.
But did you know that there is such a thing as a reverse purchase mortgage? The same basic concept and rules apply. The borrower must be at least 62 year old and in the case of a reverse purchase, the borrower normally needs a down payment of at at least 40-50%. The appeal of a reverse purchase it allows borrowers to buy a home and then have no mortgage payment going forward for the rest of their lives.
If you are interested in learning more about reverse mortgages, contact us in the form in the sidebar for refinance information, or in the form on our home purchase page for info on reverse purchases.