Financing in 85248>Question Details

Barb Hedstrom, Home Buyer in Raleigh, NC

Can I get a reverse mortgage on my house to use to buy a cheaper house all cash?

Asked by Barb Hedstrom, Raleigh, NC Sun Jan 25, 2009

Then, sell this house and get out of the reverse mortgage. I am 66 and don't want a mortgage anymore and houses are cheap now.

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It's almost 2 years since this question was asked. Although the answer may be the same, with the changes in loan-to-value on the reverse mortgages, a 66 year old may not be able to access enough equity. What might be better would be to find out how much you can borrow against the new purchase, use the proceeds of your sale to put towards equity, and then take out a purchase reverse mortgage. If anyone thinks that they can take out a reverse mortgage, then keep the home as an investment property and live in the cheaper one, they can forget about it. Once you are not living in the home for a year, the reverse mortgage has to be paid back. There are lots of issues here, only one of which is the fact that the original poster did not explain very well what she has in mind.
0 votes Thank Flag Link Mon Dec 27, 2010
If there is enough equity in your home to qualify for one, sure.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX
MSmith@PrecisionFundingUSA.com
http://www.PrecisionFundingUSA.com
0 votes Thank Flag Link Mon Jan 26, 2009
It can be done! there are some awesome values out there!

Feel free to log on my site I have a lender that may be able to help you out.

Lucinda Tkach
Windermere Central
0 votes Thank Flag Link Sun Jan 25, 2009
Phxbarb,

Your question is best answered by a mortgage specialist. If you need help finding a qualified consultant let me know and I will put you in contact with a few I know.

But you need to think through what you want to do. If you plan to sell it in the near future a regular mortgage loan might be a better fee - you will not need a reverse mortgage. In either case you will be able to get out of the house and amount that is less than the actual equity (80% maybe) minus loan costs. Meaning that the new property you will have to buy will be of lesser value than your current equity.

It might be a better, and cheaper, strategy for you just to sell your current home and use all the cash to buy another one. You will get more money that way, you will be saving money and will avoid having to pay taxes and other expenses on two homes at the same time.

Good luck!
0 votes Thank Flag Link Sun Jan 25, 2009
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