Many seniors who have owned a home for many years and never missed a monthly mortgage payment have found that when they want to down-size, banks are not keen about funding a new mortgage.
A viable option is a “reverse mortgage” which allows the Senior to purchase a new home, using only a portion of the sales proceeds from the sale of his/her home and the reverse mortgage will up the balance. Plus, the borrower’s new home is now paid for and there are no monthly mortgage payments.
Let’s say you have rented for years and don’t have a home to sell, the “reverse mortgage” is still a very viable option. With the money you have in the bank you use for a down-payment and the “reverse mortgage” will pick up the difference. No longer will the Senior renter have to worry about rent increases or a Notice to Vacate.
It’s important to know that the only way a Senior could lose his or her home is if they are unable to pay their taxes, insurance, and home owner association dues.
If we detect this to be true with a potential client, we will advise that a “reverse mortgage” is not right for them.
Being Over 62 and Having a Credit Score Over 800 Doesn’t Mean You’ll Get A Conventional Loan