Purchase a house & get a reverse mortgage.

Hello John,

When you apply for a regular or forward mortgage the loan amount is based on the lower of the sales price or appraised value. With a reverse mortgage the appraised value is what is used to help determine what amount you will receive. If you apply for a reverse mortgage and the lower value is legitimate than that's the figure they will use in determining your reverse mortgage principal limit. In other words, you can still get a reverse mortgage but after closing costs and fees it might not be worth the effort unless you are talking about a higher-end home. Regardless, I would call a trusted lender and ask him/her to run the numbers for you...it will not cost you anything for a quote.

Good luck.

MikeP.

If you don't put some cash down on your purchase, a Reverse Mortgage would likely be too expensive to do, if you can do it at all.

AARP has a reverse mortgage calculator. Go to AARP.com and search within the site for reverse mortgage. Fill in the appropriate information and see what you come up with.

If you can buy this home without a loan, you can do a reverse and get your cash back, if you wish.

Furthermore, this home must be your home of record. It cannot be your investment property.

I wish to disclose that I do Notary work on Reverse Mortgages only. I cannot advise you on any legal question, and can only tell you what I know about RM's from what I do. My knowledge comes from working with two well qualified Reverse Mortgage Consultants.

John,
At one point, the Reverses said they would allow you to use a portion of the equity to purchase. My software says the you must use the appraised value or Purchase price, whichever is lower. I don't know the selling price of the home, but I used 150K in the example (appraised) selling price of 82.5K, and the software says you need 24K and change to buy it at age 72.
Blessings,
Wes
910-262-4083