If you are a senior and own your home but are still holding out on that dream of having the ultimate vacation property which you have wanted for years, you might just be “sitting” in the resource to make that dream a reality.
Why not use funds from a reverse loan to purchase that cabin, beach house or even a tree house? Why not?
If you have enough equity in your residence you could possibly qualify for the FHA reverse loan or a Jumbo reverse mortgage and use the funds from it to purchase a second property.
Its much easier to qualify for a reverse mortgage then traditional mortgages, because they are not Underwritten using Debt to Income ratios or FICO scores, but are based upon residual income and verification of 24 months of “timely” payments for property taxes, Homeowners Insurance and any other expenses associated with the client’s residence.
You will still be on Title of your residence and continue to own it and just as you wish, it will go to your estate when you have passed on.
Not the Lender.
You won’t have any mortgage payments for the reverse loan and if the vacation property does require a mortgage (If you can’t pay “all cash” for it), you could cover those payments by renting it out during the local tourist season and still have it available for yourself whenever you want to visit it and enjoy your vacation property.
So where is your “dream” property? A beach, a lake, the mountains, the desert or an island?
What’s holding you back from enjoying your retirement years that could include more skiing, fishing, golfing, sailing or simply sitting back in an Adirondack chair on a deck, looking at blues skies, trees and hearing birds sing?
That sounds really nice to me as well.