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QUESTION:
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QUALIFICATIONS | Hi, I do have a few questions.
We live in Florida and we are looking into purchasing a home with Reverse Mortgage.
I am quite younger than the 62 limit but my husband is 68 yrs old. I heard that he still can take a reverse mortgage if I give my husband a Quit Claim Deed. I am covered by our life insurance so that does not arise any concerns with us. We do not want any extra cash. We just wish to purchase a house with no monthly payments. We are looking to downsize quite a bit (around 150K in FL zip 33647).
The question is: to buy a new househow much cash/down payment he needs? 40% ?
I heard that to have a reverse mortgage you do not need a perfect or not even a good credit. Is that true for a purchase as well? We are in middle of a Short Sale right nowand not sure if we’ll be ending in foreclosure or not…
So I wonder how long after a foreclosure/bankruptcy or Short Sale we’ll be able to purchase a new home with a Reverse Mortgage?
Thank you |  | asked by NailPro, 5/29/2010 |
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Categories:
Debt and Mortgages, Reverse Mortgage
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| ANSWERS: | | Answered by: Jason B, 06/02/10
Overall Rating:  Be the first to rate it. | Hello there,
Your husband can indeed get a reverse mortgage if you give him a quit-claim deed, or if you simply do not put your name onto the title of the new home that you intend to buy with the reverse mortgage. The question of the down payment required is dependent on his age. At the age of 68, he would likely need to put about 50% of the property's value down in order to purchase the home using a reverse mortgage.
It is true that you do not need good credit to get a reverse mortgage. As the program is not based on making payments, there is no proof of income required nor a credit check performed, and so long as you are not currently in foreclosure proceedings on the property that you are getting the reverse mortgage on, there is no requirement to delay the process.
You can find out more details by filling out one of our inquiry forms at https://www.newretirement.com/Services/Reverse_Mortgage_Advice.aspx? Login to rate this answer: | | Answered by: pwirth, 06/12/10
Overall Rating: Be the first to rate it. | Hi NailPro, The previous answer provided was partly correct. A 68 year old would need approximately 40% down, not 50%. Also, in terms of your short sale, while the program does not normally take into consideration income or credit, guidelines do require that we ask for information as to the circumstances surrounding your short sale. HUD has recently issued guidance on what they refer to as "buy and bail" which is a practice some has resorted to to buy another home before losing or short-selling their current residence. In addition, if your current mortgage is either an FHA or VA loan, having a deficiency may present problems since the reverse mortgage is backed by FHA. Best regards. Login to rate this answer: | | Answered by: James Dale, 11/19/11
Overall Rating: Be the first to rate it. | Your income and credit levels do NOT matter. Login to rate this answer: |
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