Even the first home buyers can utilize this HECM reverse mortgage opportunity, if they have the needed down payments. It is very important for some seniors, that this process will never ask the income nor the credit information.

The process as such is simple. A senior must find a home, which he or she is willing to buy. After this he will apply the HECM reverse mortgage and if he is 62 or over, he will automatically qualify. He has to include the sales contract and the verification of the funds for the down payment into the application.

1. About The Down Payments.

What is needed is the cash money. The borrowers, or buyers, cannot use the so called bridge loans to pay the down payments. This means money from the credit cards, subordinate liens, personal loans, seller loans or any other borrowing or mortgages on another properties.

2. FHA Requirements.

Most of these requirements concern the conditions of the potential objects. If the home or the house does not meet the FHA requirements, the seller must do the repairs. Usually these repairs are serious ones, like the leaking roofs etc.

3. The Qualifications.

The HECM reverse mortgage is meant to the seniors, who are at least 62. They can either own their homes now or they can be the first home buyers. When they use the HECM reverse mortgage to buy the homes, they have to use them as the primary residencies.

The process does not ask the income or credit information, because the bought home and the obligatory insurance are the only guarantees for the loan. So in all cases, the lender will get the money back and the borrower will never have to use his other assets to pay for the reverse loan.

Because the bought home will be the main guarantee of the loan, HUD has set requirements concerning the condition of the home. If there is serious repairs to be done, the seller has to pay for them. HUD will accept most of the typical house types. And finally, the borrower cannot use a financing or loans to pay for the down payment.

4. A Senior Can Buy A New Home, Without Owning A Home Now.

This is very good for the first home buyers. The only requirement is, that they have the money for the down payment. This requirement is not that big, because every senior can create sources for this small amount. And if there is several buyers, maximum three is allowed, the requirement is even smaller.

Author Bio: Juhani Tontti, B.Sc., Marketing. The HECM reverse mortgage offers a senior an opportunity to buy a new home. The reverse home mortgage can be the first home buyer. Visit: senior reverse mortgage

Category: Finance/Mortgage
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