Are you a homeowner looking to move but facing financial constraints? If so, a Reverse Mortgage for purchase may be the solution you need. With this option, you can tap into the equity in your current home to buy a new one without having to make monthly mortgage payments. Here are a few scenarios where a Reverse Mortgage for purchase can be a valuable option:
Scenario #1: Homeowners who can’t get enough cash out of the sale to move.
You may meet homeowners who are over 62 years old and say, “I would move to a more suitable home, but if I sold this one, I wouldn’t get enough cash out to buy what I want.” In this case, a Reverse Mortgage for purchase can be the solution. You can list and sell their home, and then they can combine the proceeds from the sale with the available funds from the Reverse Mortgage for purchase. This turns a previously unfeasible deal into two transactions, enabling them to move to their dream home.
Scenario #2: All-cash buyers who can’t find a suitable home within their budget.
Sometimes, clients have sold their homes or received an inheritance, but they can’t afford the homes they want. They can use a Reverse Mortgage for purchase to finance the balance and get the home of their dreams. Since there are no monthly payments, it doesn’t negatively affect their cash flow. The qualification requirements are minimal, making this option an excellent solution for all-cash buyers who can’t find something they like for what they can afford.
Scenario #3: Homeowners who need more money in their retirement accounts to move.
Many homeowners would like to move, but if they did, they wouldn’t have enough income from their retirement accounts. As a result, they stay where they are and hope that the economy will improve enough for them to be in a better financial position later. By using a Reverse Mortgage for purchase, you can list and sell your home. They can purchase their new home using only part of the money from their sale for the down payment and finance the balance with the Reverse Mortgage for purchase. This allows them to put the remainder of their cash from the sale into their retirement accounts, increasing their monthly retirement income.
In conclusion, a Reverse Mortgage for purchase can be an excellent option for homeowners looking to upsize, downsize, or relocate. It provides a way to access the equity in your current home to purchase a new one, enabling you to achieve your goals without worrying about making monthly payments. If you’re considering this option, be sure to consult with a Reverse Mortgage specialist to ensure it’s the right choice for you.