Can You Buy A Home With A Reverse Mortgage? | Buying A House With A Reverse Mortgage

Can You Buy A Home With A Reverse Mortgage? | Buying A House With A Reverse Mortgage

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In this video we talk about Can You Buy A Home With A Reverse Mortgage? | Buying A House With A Reverse Mortgage.

Video Transcript:
0:00 – Hey there. Thanks for stopping by Reversed TV. My name is Shawn and today I’ll be talking about Can You Buy A Home With A Reverse Mortgage?

0:13 – The simple answer to that question is “yes”, but I’m going to explain a little further with a couple of real simple examples for you.

0:21 – Ok, as you may or may not know, with a reverse mortgage you don’t have to make any monthly mortgage payments for as long as you live or for as long as you live in your home.

0:31 – Now, the point of entry for a reverse mortgage is either age 50 or 62 depending on whether it’s an FHA reverse mortgage or a proprietary reverse mortgage.

0:40 – Today I’ll be talking about mainly the FHA reverse mortgage and it’s age requirements. So, with that said, the point of entry is age 62 and at age 62 you can borrow roughly 40% of the home value or purchase price.

0:56 – On the other side of the age spectrum, at age 90 or so, you can borrow ROUGHLY about 64% of the purchase price.

1:05 – again, starting at age 62 it just increases a little bit with each passing year in terms of the percentage that you can borrow with a reverse mortgage.

1:18 – So here is a quick example for a 62 year old. Let’s say you’re looking to buy a home for $100,000. We’ll keep the numbers real simple. So, at age 62 you can borrow about $40,000 so you’d need to come to closing with about $60,000 plus any applicable closing costs.

1:38 – Now, what does that get for you? That’s a massive down payment? Why would anyone want to do that? Sometimes people want to down size homes. They think, “we’ll sell this bigger house, then we’ll use the proceeds to pay cash for a house and then we don’t have a monthly mortgage payment. Sounds great, right? But, you gotta get rid of all that cash.

2:00 – So with the reverse mortgage, you get the same ultimate benefit, you don’t have to make a monthly payment for as long as you live or for as long as you live in your home. BUT you don’t have to say “goodbye” with all that cash.

2:15 – So, in this example, you put $60,000 down on a $100,000 purchase price and you don’t have a monthly mortgage payment for as long as you live or for as long as you live in that home.

2:27 – On the other side of the age spectrum you can borrow roughly 65% of the home value at age 90. Again, you buy a house for $100,000 and you can finance $65,000 with a reverse mortgage and NOT have a monthly mortgage payment. So what does that leave? That leaves $35,000 that you have to put down plus any applicable closing costs. And, at the end of the day, what it gets you is that you don’t have to make a monthly mortgage payment for as long as you live or for as long as you live in your home.

3:03 – Again, I want to thank you for stopping by Reversed TV. My name is Shawn, I’d love to hear from you any information about a reverse mortgage or any other loan program. My contact info is down in the description below. I hope you have a wonderful day! Take Care!

www.ReverseMortgageLoanAdvisors.com and Reversed TV Is not a lender, bank, or mortgage broker, nor is it affiliated with HUD or FHA. Reverse Mortgage Loan Advisors is simply a website designed to offer information about the FHA insured reverse mortgage program. However, the owner of the site is licensed as a reverse mortgage specialist in several states. Anyone that inquires and requests more information may be contacted by the owner of this site. If the owner of this site is not licensed to conduct business in the state you reside, one of our affiliates will contact you instead.