A common situation where a Reverse Mortgage is helpful is when a person over 62 wants to move, but the equity in the old home is not adequate to pay cash for the new home. Some recent examples:
You may be able to move and not have to worry about having a mortgage payment
A lady was living in Utah home without a mortgage. After her husband died, she wanted to move closer to her children in Colorado. Because of the difference in home values and the costs associated with the move, the proceeds from the sale of the old home would not pay for a replacement in Colorado. We used a Reverse Mortgage to help her buy a townhome that met her needs without a mortgage payment.
A couple had a home in Nevada where property values had declined. They had a mortgage on the old property, but wanted to move closer to children in Colorado. The equity from the home in Nevada was not enough to buy a replacement home in Colorado. A Reverse Mortgage along with the equity from the sale of the Nevada property allowed them to buy a home in Colorado without a mortgage payment.
You may be able to buy a home you originally thought to be financially out of reach
A single lady owned a home with no mortgage and wanted to buy a more expensive home. She did not have enough cash to buy the home she wanted without a mortgage. She did not have enough income to qualify for a regular amortizing loan, but she was able to buy the home she wanted with a Reverse Mortgage.
You may be able to stop working and still be able to afford the home you want
A 76 year old widow wanted to move from a regular house to a townhome so she wouldn’t have to deal with exterior maintenance. She had a mortgage on the old home and needed a mortgage to buy the home she wanted. We made the arrangements for a conventional loan using the equity from the old home as down payment. She had enough income from her job and social security to qualify to the loan she wanted. I pointed out that a Reverse Mortgage might allow her buy the townhome she wanted and give up the job she needed with a forward mortgage.
I’m always happy to provide free information to help a buyer understand their options with either a conventional forward mortgage or a reverse mortgage.
Please contact me at 303-469-1254 so I may assist you with your specific scenario.