Auburn, CA (PRWEB) February 20, 2009
On January 1, 2009, HUD/FHA began insuring reverse mortgages used to purchase homes. In the past, reverse mortgages have only been available as a refinance loan to seniors who already resided in the home.
This is fantastic news for senior homeowners aged 62 and older. But, what does it really mean to seniors? Well, it gives seniors the opportunity to purchase a new home without monthly payments. Reverse mortgages do not have credit or income requirements, therefore, this will make buying a home for first time buyers, seniors looking to downsize from their existing homes or those seniors needing special requirements like wider hallways, much easier to obtain. Reverse mortgages are based on appraised value and Borrowers age. As a rule of thumb, the older you are, the more you qualify for.
"I'm ecstatic to be able to offer the reverse mortgage for home purchase," stated Mike Borba, President of Borba Investments, Inc. dba MLS Reverse Mortgage. "I feel it's truly a needed product and will help hundreds of seniors more comfortably age in place."
For those interested in the purchase reverse mortgage, a quick phone call to MLS Reverse Mortgage will answer a lot of burning questions. For example, how much money will I need as a down payment? Also, if you know how much money you have available for down payment, MLS Reverse Mortgage can let you know the purchase price range of homes that you should be looking for.
Example 1: A 65-year-old borrower who purchases a $300,000 house would need about $125,000 to put into the transaction as a down payment and towards closing costs. *
Example 2: A 65-year-old borrower has $65,000 to use as a down payment and towards closing costs. She/He would qualify to purchase a home valued around $144,000. *
Reverse Mortgages have seen a major jump in popularity over the past few years. But, what is a Reverse Mortgage? A majority of senior homeowners would like to stay in their own homes throughout their retirement years. However, everything from rising healthcare costs to increasing home maintenance expenses are making that more and more difficult. As a response to the apparent problem, the U.S. government created a financial solution for homeowners 62 and older. The solution is called a Reverse Mortgage and it may just help seniors truly enjoy their retirement years. A reverse mortgage enables homeowners 62 or older to convert part of the equity in their homes into tax-free income without having to sell their home, give up title, or take on a new monthly mortgage payment. And now, seniors have the option to use a reverse mortgage to purchase a new home.
MLS Reverse Mortgage is headquartered at 13478 Luther Road, Suite C, Auburn, CA and can be reached at 1-888-888-4834 or on the Internet at http://www.mlsreversemortgage.com. Reverse mortgage for home purchase information is available at http://www.mlsreversemortgage.com/reverse_mortgage_home_purchase.html.
- Purchase examples based on the CMT HECM225 using rates as of 2/17/2009. Subject to change. Applicable TALC not included. Call 888-888-4834 for details.