I plan to buy a house for 250 K cash and then get a reverse mortgage to provide my living expenses for life.

Asked by , 89032 Sat Jun 28, 2008

I am 75.

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8
Glena T. Dee, , Las Vegas, NV
Sun Jul 27, 2008
BEST ANSWER
Arthur,
I am both a Relator and a loan officer. I am fully trained in Reverse Mortgage and I can help you. Someone who said that the only loans that are being qualified these days are scores of 700+ tells me that she has very limited knowledge of how Reverse Mortgage works. Reverse mortgage does not ride on credit scores, so even if you have bad credit...you can still qualify. Also, you are guaranteed not to lose the home where you live. For as long as you are residing there, the bank cannot take your home away from you. If you have very little equity, you will not be approved in the first place, but in your case, your home will be fully-paid, so you will have lots of equity to cover you. The idea is that you are never to worry about losing your home for as long as you live there.

Like what Alan Jones from Phoenix said, you will have to wait 6 months for seasoning before you can apply for a Reverse Mortgage.

It is dangerous for people to give advice when they know very little. People who are giving the idea that you could loose your home to a Reverse Mortgae have not educated themselves on how it works and gives advice based on assumption. I have seen my clients signing documents that states that their reverse mortgage Note are due in the year 2062...even 2096 - that does not look like they are going to lose their homes in their life time.

If you want to talk to a specialist on Reverse Mortgage, let me know and I will direct you to the right path. I also live in North Las Vegas, so if you have made your mind in purchasing a home, please feel free to contact me and I will be more than happy to assist you.

Best, Glena
0 votes
Kyletrulia, , United Neighborhood of Springdale, Tulsa, OK
Mon May 27, 2013
Hi arthur

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

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5 votes
Tony DePasqu…, Both Buyer And Seller, Henderson, NV
Sat Aug 9, 2008
Arthur:

As the owner of a finanical planning company with ING Group, the owner of a mortgage company, and a licensed Realtor, I can say that you ABSOLUTELY must speak with a financial advisor, and/or your attorney, CPA , etc. prior to making this decision.

There are many regulations involved with reverse mortgages, and they are certainly not an appropriate investment tool in every situation. A reverse mortgage will eliminate the control you have over your assets, and will certainly deplete your inheritable estate. This may be an issue for you, or it may not, but you have to take these considerations into account.

If you are looking to structure retirement income, there are many options you have that can be far superior to a reverse mortgage. You could build income producing assets through a municipal bond portfolio, CD's, dividend producing stocks, or annuities. All of these investments will generate income and give you more control and flexibility over your money than a reverse mortgage would..

I am not saying a reverse mortgage is not an option for you, as my firm has used this strategy with some of our clients, but you certainly need to weigh your overall situation prior to making a decision like this.

Please feel free to contact me. I would be happy and honored to help you in anyway that I can. I am enclosing a link to my company website, so you can view information regarding myself and my firm. Hope to hear from you, as I am available at your convenience.

Regards,

Tony DePasquale
President
The America Consolidated Companies
email: CEO@AmericaConsolidated.com
2 votes
Virginia Hepp, Agent, Mesquite, NV
Sat Jun 28, 2008
Hi Arthur - Before you do buy a house, consult with your tax adviser and estate planner to decide if this is the right thing to do. It could be a good plan, but be sure that you investigate thoroughly all of your options and the ramifications of paying cash for a home and then getting a reverse mortgage. Your real estate agent should be able to refer you to someone, if you don't have any professional advisers. Good luck to you.
1 vote
David Cooper, Agent, Los Angeles, CA
Mon May 27, 2013
You realize the house reverts back to the reverse mortgage insurance company when you die?


David Cooper Investing in Las Vegas since 1994
FREE REO Foreclosure List http://www.lasvegaswinner.org
0 votes
Linda Randes, , 32579
Sat Aug 9, 2008
Reverse mortgage can provide financial security for many seniors but be aware that there are some companies that specialize in taking advantage of seniors. Make certain that you work with a firm that specializes in Reverse Mortgages and works through the FHA system to fund your mortgage. FHA will insure your property against financial loss should the value of your home decrease below the mortgage owed on it. Many areas have seminars that various lenders sponsor...look in your newspaper or on-line and attend at least a couple from different lenders to make certain that you understand the programs and feel comfortable with both the lender and your commitment to go forward with this program.
Web Reference:  http://www.lindarandes.com
0 votes
Alan Jones, , Phoenix, AZ
Thu Jul 24, 2008
I am a Benefit Counselor and assist senior citizens to obtain financial freedom through FHA insured reverse mortgages to improve their quality of life in 30 states currently. It is quite possible to do exactly that, as you will have 250K equity...BUT you will most likely have to let the loan "season" for six months to the day in order to initiate the reverse mortgage.

I CAN HELP...Even if seniors have:

=> FORECLOSURE looming,
=> TAX LIENS
=> LATE PAYMENTS,

If you (or you and your spouse) are over the age of 62, you can receive a tax-free check each month (or lump sum) to spend on anything you wish.

A FHA Reverse Mortgage can literally transform your retirement. Features include:
• No mortgage payment for as long as you own and live in your home
• No income taxes are paid on the cash
• You retain title to your home
• You may sell your home at any time
• No credit, employment or income requirements
• You can never owe more than the home is worth

H.U.D. and A.A.R.P. endorsed. We are a mortgage banker and broker.
CALL ME TODAY at: (480) 621-4219 or e-mail me at ajones@thelendingco.com
Web Reference:  http://jcaj.thelendingco.com
0 votes
Carolyn, , Las Vegas, NV
Tue Jul 22, 2008
arthur, you better investigate this option more. it can be devestating. here's the "skinny". the only people qualifying for loans these days have credit scores above 700+. Don't know where you got your advise but you have to have equity in your home in order to qualify for a reverse mortgage. they are set up for senior citizens who have built up equity and are about to lose their property because they can no longer make the payments. the bank will offer them a reverse mortgage, which allows the bank to take the equity in the home and divides it up into monthly returns to the homeowner. Sounds like a good deal right? in essence, the bank is depleating your equity and when there is no equity left, you will no longer have a home because the bank will own it all, and they will foreclose on your property. it's also a bad deal if you intend on leaving your home to your heirs. they will get zippo! if you are married, and one of you dies...the other can continue to live in the property and receive the reverse money, however, when the last surviving spouse passes, the bank has a lien on the property and your heirs are left with nothing but cleaning out your household belongings. they will get nothing because the bank owns it all.

I can't figure out where you got the idea or information that you could BUY a house with a reverse mortgage anyway, you can't. Let's say for some reason a realtor has told you to do this, I would be extremely careful and look for someone else to help you. Please get some professional advise.

if i had the money to buy a house for cash i wouldn't! Plain and simple arthur with the housing market the way it is, you could stand to loose your money. plan for a future where you and your loved one can live comfortably for the rest of your lives...and slow down
0 votes
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