How Would You Like To Buy a House WITHOUT Having to Make Any Mortgage Payments?
Yes, this is something new & sounds almost too good to be true! This is also called a REVERSE MORTGAGE, but it is FOR a HOME PURCHASE! The buyer must be, at least, 62 years old. A DOWN PAYMENT from the home’s sale or from the buyer’s assets (CD’S, IRA’S, savings, whatever) This is amazing: there are no credit checks or income requirements!
The money received must be used to purchase a primary residence. The costs incurred are similar to those of a conventional mortgage: appraisal, inspection & origination fees, title policy, mortgage insurance, & other normal closing costs, which can be “rolled” into the down payment (Figure around $10,000.) The bank gives a % of what the home is worth based upon an age formula (60 to 85% based upon the age of the youngest applicant–the older the age, the more $ received), & the buyer brings the remainder to the closing. (The maximum that can be received is $625,500!)
There are NO MORTGAGE PAYMENTS! The buyer keeps ownership of the home! His/her job is to pay the taxes, insurance, assessments, & maintain the home. The buyer does NOT have to sell the property to repay the loan. The heirs can take on a conventional home mortgage.
There is a mandatory (Cost: Could be “fee” if GRANT money is obtained. The cost is approximately $125.00) counseling session to determine whether a reverse mortgage is right for the buyer. This can be accomplished in person or on the telephone, & this HUD REVERSE MORTGAGE COUNSELOR will present the applicant with a certificate of completion called “The Borrower Counseling Certificate.”
FHA will appraise, verify the value of the property. After closing, the buyer has 60 days to move into the home! Just imagine, NO MORTGAGE PAYMENTS! NO CREDIT CHECKS! More “older people”will be able to buy a home & enjoy their retirement years with less worries!!