|
Here is a NEW (FHA) Reverse Mortgage program
that will allow you to:
Purchase a home and have no mortgage payments
for as long as you live in the home.
This works well for those clients that want to purchase a home
but due to income or credit issues may not "qualify" for a
conventional mortgage. If you are relocating, downsizing, or need
a different home that can accommodate your physical needs, the
Reverse Mortgage Purchase Program just might be the answer.
1. You DO NOT need to be "first time buyers".
2. One of the buyers must be 62 years of age or older.
3. You must have a "Counseling Certificate" from an HUD
approved Counselor prior to the Loan Application.
(I can provide you with a list of approved counseling services.)
4. NO Income is required or verified.
5. Your Credit History will have no bearing on the loan approval.
6. Asset Verification will be required.
7. Gift Funds for the down payment or closing cost can be used,
if they come from a "relative".
8. The SELLER can-not pay any of the buyers cost or provide
any financial incentive (except a price reduction) to the buyer.
9. No Discount Points are allowed.
10. The property must be the buyers Primary Residence.
11. 1 to 4 Family Residences can be purchased.
12. New Construction must be complete, with a "Certificate of
Occupancy" on file.
13. The buyer must occupy the property within 60 days from the
date of closing.
Only current owners of record may sell properties that will be FHA insured. Any resale of a property may not occur 90 or fewer days from the last sale to be eligible for FHA financing. For any resale's that occur between 91 & 180 days where the new sale exceeds 100% of the previous sales price, FHA will require additional documentation validating the properties value.
The Down Payment information below is based on a $350,000 purchase price, using HECM Fixed Rate Mortgage, on 10-1-09.
The "Down Payment" Percentage indicated INCLUDES the required "Down Payment" and the normal "Closing Cost and FHA MIP" necessary to do the loan.
Age and Down Payment schedule:
|
AGE |
Down Payment |
AGE |
Down Payment |
|
62 |
49.7 % |
63 |
49.0 % |
|
64 |
48.3 % |
65 |
47.5 % |
|
66 |
46.8 % |
67 |
46.0 % |
|
68 |
45.4 % |
69 |
44.6 % |
|
70 |
43.8 % |
71 |
43.0 % |
|
72 |
42.3 % |
73 |
41.5 % |
|
74 |
40.7 % |
75 |
39.9 % |
|
76 |
39.1 % |
77 |
38.2 % |
|
78 |
37.4 % |
79 |
36.6 % |
|
80 |
35.8 % |
81 |
35.0 % |
|
82 |
34.1 % |
83 |
33.4 % |
|
84 |
32.5 % |
85 |
31.7 % |
|
86 |
30.9 % |
87 |
30.1 % |
|
88 |
29.4 % |
89 |
28.7 % |
|
90 |
27.9 % |
|