It’s now possible for anyone over the age of 62, to purchase a home using a Reverse loan! This is wonderful news and opens up many possibilities to stimulate the Real Estate market, which we all know is very, very slow.
In general, all of the traditional requirements remain the same but now the documentation will be more in line with a traditional loan. In other words, the source of funds for the down payment ( yes, there will still be one ), verification of funds that might be needed to close the loan and they must occupy the property. No rentals or investment purchases will be allowable.
The client does not have to qualify for the loan on their credit or income, just be age 62 or more. It’s all pretty simple, pretty exciting and I think it will make a difference in the Real Estate market overall as some seniors will want to take advantage of this, still own their own home but not be obligated to make any mortgage payments.