Home Buying in Stow>Question Details

Susanburgos, Home Buyer in Stow, OH

My parents own a home and have a reverse mortage. They would like to purchase another home with more room but keep their other home also. Can they???

Asked by Susanburgos, Stow, OH Thu May 12, 2011

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Hi Susanburgos

Its an important question.You should get answer from any reliable reverse mortgage company. I have a reverse mortgage which name is reverse mortgage lenders direct. They are very helpful. You can get right answer from their by search

6 votes Thank Flag Link Sat May 25, 2013
I would imagine that they could purchase another home, but they would need to re-finance the Reverse Mortgage into a Conventional mortgage as a reverse mortgage is only allowed for an owner occupied home. Even if they paid cash for the new home, they would need to notify their reverse mortgage lender of their move. Hope this helps!
Micah Riley, Realtor
330.338.5130 cell
0 votes Thank Flag Link Mon Aug 12, 2013
The reverse mortgage would have to be converted to a standard mortgage.The Reverse Mortgage program is only allowed for owner occupied properties. So if they covert the mortgage they would be able to keep it and purchase a new home. They can also use the Reverse Mortgage Product to purchase the New home if they would like. I would be gald to assist you and your parents in this process. Please give me a call.

Kevin Kasian
866-685-7476 ext 2301
New Penn Financial
0 votes Thank Flag Link Fri May 13, 2011

I know that in order to obtain this type of loan it must be a primary residence, which it was at the time of the loan. I am not certain however, if there can be any such language in a mortgage preventing an individual from purchasing another home. The conditions of the loan will be spelled out in the mortgage loan documents. If you have them available, I'd start with reviewing the mortgage loan documents that your parents signed to understand what, if any, stipulations are tied with this loan.
Feel free to contact me if you have any additional questions!
0 votes Thank Flag Link Fri May 13, 2011

I am a Realtor in the Stow area, and I'd be happy to assist you and your parents. I can connect you with lenders that can give you the proper advice concerning the reverse mortgage, and help them find the new home.

Chris Hallum, Keller Williams Chervenic Realty
Web Reference: http://www.ChrisHallum.com
0 votes Thank Flag Link Fri May 13, 2011

They can keep the house but they can not keep the reverse mortgage... they would have to refinance into a different mortgage. One of the stipulations of the reverse mortgage is that it is for the primary residence... So, they may be able to use a new reverse to purchase the new home...

Really need to talk with a reverse mortgage specialist they are a tricky item but that is the basic answer to get you started... Hope it helps.

0 votes Thank Flag Link Thu May 12, 2011
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