…And never pay another penny until you move out or pass
away. Too good to be true? Not if you use an FHA Home Equity Conversion
Mortgage for the Purchase of the home available for people over age 62. The
purchase is closed after an FHA appraisal to verify the house is worth what you
offered and you show your down payment of 50% with the funds from the mortgage
are sufficient.
There are no further monthly mortgage payments required. You
must take possession and move into the home within 60 days of closing. The
funds you use for your down-payment must be your own funds, or a gift from a
relative (not borrowed funds).
This mortgage is a reverse mortgage in that you do not have
to make mortgage payments out of your pocket, however, the cost of the mortgage
is assessed against the house which means your equity gradually declines as you
age. Because the mortgage is insured by FHA, regardless of how long you live, the
house remains in your name and may be left to your heirs, who can decide what
to do with it just like any other house with a mortgage.
Example:
Sell your house for $200,000 and payoff any loans and your
realtor using $20,000
Your net proceeds from the sale would be $180,000
Purchase a new home at a sales price of $200,000
Put down 50% ($100,000) of the sales price and use the Home
Equity Conversion Mortgage $100,000 to close the purchase
Keep your remaining $80,000
Questions? Want more information as to how I can help you pay half price for your next house? Call me, Julia Atherton, at 502-426-7840 right now!
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