Though the federally-insured reverse mortgage has been in existence for over 25 years now, the reverse mortgage for purchase was not introduced until October 2008. This program gives people who are at least 62 years of age the ability to purchase a home using the loan proceeds from a reverse mortgage.
You must occupy the home as your primary residence.
All repairs must be completed by the seller prior to closing.
The seller cannot provide any financing or concessions.
You can purchase a home within a single transaction!
Homeowner’s who are at least 62 years of age are able to purchase a new residence by obtaining a reverse mortgage. A reverse mortgage for purchase gives homeowner’s the opportunity to relocate closer to family or to downsize to homes that meet their physical needs.
You will never owe more than the market value of your home!
An FHA reverse mortgage loan is a non-recourse loan and federally insured. As long as you remain current on all obligations, taxes and insurance and keeping up home maintenance, you can never owe more than the fair market value of the home, as determined by a licensed FHA-certified appraiser.
You can remain in your home with NO monthly mortgage payment!
As long as the homeowner continues living in the home as their primary residence and remains current on all loan obligations (including paying all taxes and insurance and keeping up home maintenance) the loan balance will not become due and payable.