- A Reverse Mortgage for Purchase is offered to seniors wanting to purchase a home without using all their personal resources they may have gained from the sale of a previous home or from their retirement accounts.
- A Reverse Mortgage for Purchase is best utilized when downsizing from a larger home to a smaller one (or moving into your dream retirement home on the coast/golf course or in the mountains).
- The down payment and amount of the mortgage you can qualify for is based on the sales price (or value) of the new home, the borrower’s age and the current rates of the day.
- There are currently no income or credit requirements (as long as there is no other real estate owned), but the lender will verify the funds necessary for the down payment and closing costs as well as conduct a Financial Assessment. As part of the financial assessment the borrower will need some additional documentation including such things as:
- Income and tax forms (pay stubs, W2’s or 1099’s, social security or pension awards letters)
- Payment history for various debts if not included on the credit report
- Documentation of assets currently owned or in the bank (monthly or quarterly bank ments statements)
- There are NO monthly mortgage payments (homeowners must keep property taxes, insurance and HOA dues paid current and must maintain the home as their primary residence) and repayment of the loan does not occur until the last borrower no longer lives in the home.
- Interest and FHA Mortgage Insurance is all added to loan balance and loan repaid upon sale of the home or the heirs may refinance the home into their name.
- There is NO recourse to the borrower or their heirs if the loan cannot be repaid once the last borrower is no longer occupying the home as their primary residence. You will never owe more than the home appraises for.
Bon Air Mortgage Company
14818 Diamond Creek Terrace, Midlothian, VA 23113
Copyright © 2019 Bon Air Mortgage Company - All Rights Reserved.
NMLS# 305595 An Equal Housing Opportunity Lender
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