Idaho Reverse Mortgages

Yes YOU can! A HECM (Home Equity Conversion Mortgage) reverse mortgage for Purchase, or or HomeSafe for Purchase, FARs proprietary reverse mortgage for purchase, are tools that allows borrowers to purchase a new home with a reverse mortgage loan. The process is similar in some ways to using a forward mortgage to purchase a new home. The borrower still needs to work with a real estate agent on the transaction, and many of the same closing costs and timeframes apply. Older homeowners often find themselves wanting (or needing) to RELOCATE to be closer to family members, DOWNSIZE to a more manageable home, or even UPSIZE to a retirement dream home on the beach, golf course, or active adult community. The reverse mortgage for purchase tool can be an ideal solution for accomplishing your retirement relocation goals.

With a HECM or HomeSafe for Purchase, your new home down payment is typically between 45% and 62% of the purchase price, depending on your age or your eligible non-borrowing spouse’s age, if applicable. The rest of the funds for the purchase come from the HECM or HomeSafe loan. This allows you to keep more assets to use as you wish, as compared to paying the down payment with cash, while still having no required monthly mortgage payments.

To qualify for a reverse mortgage, you will have to have a significant amount of equity built-up in the home. There is no specific amount of equity needed and you can get a reverse mortgage even if you have an existing mortgage. The proceeds from the reverse will pay it off and the balance is incorporate into the amount borrowed. As a rule of thumb, you should have 50% equity or more in your home for a reverse mortgage. This is because you must use the reverse mortgage proceeds to pay off your existing home loan first. If you own less than 50%, the proceeds of your reverse mortgage won’t cover that gap.

There are several requirements to maintain a reverse mortgage agreement. Aside from maintaining the home in a state of good repair, there are two additional stipulations: - The home must be your principal residence - You must stay up-to-date on all property charges such as property tax and homeowners insurance

There are several factors involved to qualify for a reverse mortgage. - You must be 60 years or older - You are not delinquent on any debts owed to the federal government - You must have a significant amount of equity in the home or own it out-right - You must live in the home as your principal residence - You must be able to continue paying property taxes and other costs associated with the home (maintenance, insurance, HOA fees, etc).