813.910.8020 Apply Now

Mortgage Broker Tampa, FL | Mortgage Lender Tampa Florida | Marimark Mortgage

  • Home
  • Homebuyers
  • Homeowners
  • Realtors
  • Investors
  • About Marimark
  • Contact Us
  • Mortgages
  • Apply Now
  • Current Mortgage Rates
  • Calculators
  • Testimonials
  • Blog
  • Videos
  • Featured In
Home / Blog / Reverse Mortgages / Buy Your Next Home and Make $0 Mortgage Payments For Life

Buy Your Next Home and Make $0 Mortgage Payments For Life

August 18, 2014 By Mary Catchur

Reverse Mortgage
Photo Credit: American Advisors Group/Flickr/CC.

Many people are familiar with the Reverse Mortgage, also known as the Home Equity Conversion Mortgage or HECM, which allows seniors (age 62 and over) to access the equity in their homes to obtain needed funds for home repairs and/or daily living expenses that retirement funds are not sufficient to cover.

However, even though the program has been available for many years (January 2009), many seniors and even Realtors are not aware that the program can also be used to purchase a new home. This is particularly beneficial for seniors who want to downsize to a smaller home or move to be closer to their families as they age. The program was designed to allow seniors to purchase a new principal residence and obtain a reverse mortgage within a single transaction.

Buying a Home with a Reverse Mortgage

The criteria for qualifying for a HECM for purchase is similar to that required for a HECM refinance and is set forth by the Federal Housing Administration (FHA). The borrower must be at least 62 years old, plan to occupy the home as a primary residence, cannot be delinquent on debt to the federal government and must attend and receive a certificate of completion of HECM loan counseling. Your lender will provide you a list of approved counseling agencies where you can obtain the required counseling. Family members are encouraged to participate in these sessions with the senior borrower (s).

In addition the property must meet eligibility requirements of FHA. All repairs to correct major property deficiencies that threaten the health and safety of the homeowner and/or soundness of the property must be completed by the seller prior to closing.

Typical property deficiencies requiring correction are:

  • No running water.
  • Leaking roof.
  • No primary heating source.
  • Inadequate electrical system (including lighting).
  • Inoperable doors and windows (inhibited ingress and egress).
  • State or local code violations.

An appraisal is required for all HECM transactions, including purchase transactions.

Similar to a HECM refinance, the lender will calculate the amount that the HECM mortgage will provide for the funding of the home based on the borrower’s current age and value of the property.

Other Requirements:

  • Credit scores typically are not an important consideration. However, the lender will run credit to determine if there are any other concerns, such as tax liens, judgments, etc.
  • Seller concessions or seller paid closing costs are not permitted on a reverse mortgage purchase.
  • The borrower does not have to report a substantial amount of income, however, he/she is required to demonstrate ability to pay for homeowners insurance and taxes on the home and must be able to cover ordinary maintenance costs.
  • The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance All remaining equity is inherited by the estate. The estate is not personally liable if the home sells for less than the balance of the reverse mortgage.
Opt In Image
Stay Informed, It's Your Money
Marimark Mortgage Newsletter

The Marimark Mortgage Newsletter will keep you informed with important events in the mortgage industry that could impact your finances.

We especially focus on ways to save money on your current and future mortgages. And, we continually share the information we share with our clients, because we believe informed consumers are the best consumers.

Real estate agents, and other professionals in the industry, will receive an ongoing wealth of information that will help them serve their clients.

Thank you for signing up!

Filed Under: Reverse Mortgages Tagged With: reverse mortgage

Opinions, estimates, forecasts and other views contained in this page do not necessarily represent the views of Marimark Mortgage or its management and should not be construed as an offer to provide financing at the rates or terms mentioned. Due to market fluctuations, interest rates are subject to change at any time and without notice. Interest rates are also subject to credit and property approval. Although Marimark Mortgage attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. Information from this page may be used with proper attribution.

Save with a Mortgage from Marimark

Whether you are buying a home or refinancing, you can save with a mortgage from Marimark Mortgage!

    Search

    Post Categories

    Testimonials

    Refinancing with Mary an absolute pleasure

     
    Refinancing with Mary has been an absolute pleasure. I have never been through the process before and she took the time to explain each step. She was prompt (had a rate locked in right away) and most importantly always answered the phone or emails almost immediately! The communication line alone made the refinancing process every bit worth it. Would recommend to anyone, and will be back for any future purchases! Bret Brennan, March 2021
    See More Reviews
    Marimark Mortgage LLC
    5327 Primrose Lake Circle
    Tampa, FL 33647-1328
    (813) 910-8020
    (866) 910-8020

    Accessibility
    Privacy Policy
    Terms of Service
    Sitemap

    Reviews

    Website Testimonials
    Google Reviews
    Zillow Reviews
    Trulia Reviews
    Facebook Reviews
    Yelp Reviews
    BBB A+ Rating

    FOLLOW US

    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    Marimark Mortgage is a BBB A+ Accredited Business

    Recent Posts

    • FHA Announced a 30-Basis Point Reduction to Annual Mortgage Insurance Premiums
    • How Can You Improve Your Credit Score?
    • Historical Mortgage Rates From The 1970s
    • What You Need to Know About Mortgage Forbearance
    • Top Tips to Save Money for a Down Payment

    © 2023 Marimark Mortgage, LLC All Rights Reserved. | Internet Marketing by Image Building Media. | RSS Feed

    Reviews / Recommendations: Google, Zillow, Trulia, LinkedIn, Facebook, Yelp, BBB

    Licensed in Florida by the Office of Financial Regulation, Mortgage Lender License #MLD77.
    Licensed in Virginia by the Virginia State Corporation Commission, License MC#4556.
    Licensed in Pennsylvania by the Department of Banking and Securities, License #40222.
    NMLS#248318 – www.nmlsconsumeraccess.org.