The reverse mortgage purchase program helps ensure that senior homebuyers do not have to make any monthly mortgage payments for as long as they live in their new home and remain current on homeowner's insurance, real estate taxes, and home repairs. The home purchased with the reverse mortgage purchase program must be the borrower's principal residence.

Reverse Mortgage for Purchase: Eligible Property Types

Reverse Mortgage for Purchase: Ineligible Property Types

Reverse Mortgage for Purchase Transaction Details

In order to qualify for a reverse mortgage purchase, the home must meet FHA property requirements. Any necessary repairs must be completed by the seller prior to closing on the home with the reverse mortgage. The down payment on the reverse mortgage purchase program may come from cash assets, gift funds, and/or tax deferred retirement accounts. Other forms of down payments may be used for the reverse mortgage purchase, but must be approved by the lender prior to closing. Sellers may not provide any concessions or financing.

Reverse Mortgage for Purchase Advantages

A reverse mortgage purchase can allow you to downsize, relocate, or simply change residences without ever worrying about a monthly mortgage payment. Just like other reverse mortgages, real estate taxes, homeowner's insurance, and home repairs continue to be the your responsibility for as long as you live in the home. The reverse mortgage for purchase will become due and payable when the last borrower leaves the home permanently or makes another location their primary residence. As long as taxes, insurance, and home repairs are kept current, you will never owe the lender more than the fair market value of the home.