REVERSE MORTGAGE INFORMATION
Seniors Now Have Greater Flexibility and Opportunity
to Secure Their Retirement
A new rule enabling the purchase of a home with a reverse mortgage is giving senior adults
greater flexibility when it comes to where they live and the type of home they live in, the means to
help family members who are struggling, and the opportunity to increase their security and
retirement income.
The Housing and Economic Recovery Act of 2008 approved the new program to allow the
purchase of a home with the Federal Housing Administration (FHA) insured-reverse-mortgage
beginning January 1, 2009.
A house purchased under this new program must be a primary residence and will require a large
down payment. However, there is no repayment of the reverse mortgage for as long as senior
homeowners live in their home.
This new means of financing the purchase of a home has created the opportunity for seniors to
downsize, move to a house that is more comfortable, safe, and is convenient to services, or move
closer to family.
Today’s tighter credit standards might present a problem for most seniors trying to purchase a
home. However, credit is not a problem with the reverse mortgage because income and credit are
not used to qualify.
Eligible properties include 1-to-4-unit houses, condominiums, and manufactured homes built after
June 15, 1976 on a permanent foundation.
Along with downsizing, some seniors are finding it necessary to buy a bigger home to
accommodate adult children and their family moving back in with them after losing their home in
foreclosure or losing their job.
Although extended family living arrangements can be difficult, there are benefits in helping adult
children to get back on their feet, and to provide grandparents the opportunity to be more
grand-parental and develop closer family ties.
Senior adults also have the ability to use the reverse mortgage purchase program to increase their
retirement income. By buying a duplex, triplex or fourplex, seniors can live in one unit and rent
the other units to produce income. With no monthly payments on the reverse mortgage, the
rental income can be used to increase their retirement income.
In addition, seniors are able to buy a second home with a reverse mortgage and make it their
primary residence. The second home could be located in a warmer climate, which would allow
the senior to live part of the year in one home and the other part of the year in the other home.
The qualifying age for a reverse mortgage is 62 or older, and it does not affect Social Security and
Medicare benefits.
We are experiencing a surge of seniors who are buying a home with the reverse mortgage. Not only do they have no monthly mortgage payments, they also have the peace of mind in knowing that they can’t lose their home as long as they maintain it in good condition and pay their homeowner’s insurance and property taxes.
The U.S. Department of Housing and Urban Development (HUD) provides answers to frequently
asked questions about the reverse mortgage purchase program at http://www.hud.gov/offices/hsg/sfh/hecm/faqs_hecm.cfm.
This also covers using the program to
buy a foreclosed house. To learn more about the reverse mortgage purchase program visit nrmec.org
greater flexibility when it comes to where they live and the type of home they live in, the means to
help family members who are struggling, and the opportunity to increase their security and
retirement income.
The Housing and Economic Recovery Act of 2008 approved the new program to allow the
purchase of a home with the Federal Housing Administration (FHA) insured-reverse-mortgage
beginning January 1, 2009.
A house purchased under this new program must be a primary residence and will require a large
down payment. However, there is no repayment of the reverse mortgage for as long as senior
homeowners live in their home.
This new means of financing the purchase of a home has created the opportunity for seniors to
downsize, move to a house that is more comfortable, safe, and is convenient to services, or move
closer to family.
Today’s tighter credit standards might present a problem for most seniors trying to purchase a
home. However, credit is not a problem with the reverse mortgage because income and credit are
not used to qualify.
Eligible properties include 1-to-4-unit houses, condominiums, and manufactured homes built after
June 15, 1976 on a permanent foundation.
Along with downsizing, some seniors are finding it necessary to buy a bigger home to
accommodate adult children and their family moving back in with them after losing their home in
foreclosure or losing their job.
Although extended family living arrangements can be difficult, there are benefits in helping adult
children to get back on their feet, and to provide grandparents the opportunity to be more
grand-parental and develop closer family ties.
Senior adults also have the ability to use the reverse mortgage purchase program to increase their
retirement income. By buying a duplex, triplex or fourplex, seniors can live in one unit and rent
the other units to produce income. With no monthly payments on the reverse mortgage, the
rental income can be used to increase their retirement income.
In addition, seniors are able to buy a second home with a reverse mortgage and make it their
primary residence. The second home could be located in a warmer climate, which would allow
the senior to live part of the year in one home and the other part of the year in the other home.
The qualifying age for a reverse mortgage is 62 or older, and it does not affect Social Security and
Medicare benefits.
We are experiencing a surge of seniors who are buying a home with the reverse mortgage. Not only do they have no monthly mortgage payments, they also have the peace of mind in knowing that they can’t lose their home as long as they maintain it in good condition and pay their homeowner’s insurance and property taxes.
The U.S. Department of Housing and Urban Development (HUD) provides answers to frequently
asked questions about the reverse mortgage purchase program at http://www.hud.gov/offices/hsg/sfh/hecm/faqs_hecm.cfm.
This also covers using the program to
buy a foreclosed house. To learn more about the reverse mortgage purchase program visit nrmec.org