Reverse Mortgage Requirements Florida Reverse Mortgage Information For Seniors What Is The Catch With Reverse Mortgage – Reverse Mortgage Guides is a reverse mortgage educational website. Our goal is to help explain many of the pros and cons of a home equity conversion mortgage (hecm) for homeowners. We publish articles and tools for older Americans who are considering a reverse mortgage and want to become further educated before making a decision.

Buy a Home With a Reverse Mortgage. A reverse mortgage for purchase may help some seniors finance a new place to live. Most seniors take out a reverse mortgage to help them stay in their existing home as they get older. But Myra Simmons, 67, took advantage of a little-known product: She used a reverse mortgage to finance a new home.

One of the primary uses of a reverse mortgage is to pay off a mortgage or other property lien and therefore eliminate all payments associated with your home. By using a reverse mortgage to purchase a property instead of on a property you already own, you can bypass the need to ever have a forward mortgage.

A Home Equity Conversion Mortgage (HECM) for Purchase is a reverse mortgage that allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from the reverse mortgage.

This reverse mortgage variation was introduced in 2008 and was specifically designed for seniors who wanted to switch houses or relocate to a different area. A HECM for Purchase is essentially a reverse mortgage on a new house. Most importantly, it is not subject to the same income qualifications as a forward mortgage. Here’s how it works:

The most common way for someone to use the reverse mortgage purchase loan is to sell their previous residence and use the proceeds as the down payment for the new home. The trick is getting the timing right with the previous sale versus the new purchase. You can do a simultaneous close if you are comfortable with the risk involved.