Real Estate Professionals

You Can Help Retirees Maximize Their Purchasing Power

With a reverse for purchase loan, retirees can use their home equity to live where they want, in the house that they want—without having to pay monthly mortgage payments. They just need to pay taxes, insurance, and maintain the home.

Many retirees would like to move, but some are still making mortgage payments, and others are fixed on the idea of having a home free and clear. That means many retirees think that unless they want to move somewhere less expensive than their current home, they are locked in place. That’s a shame, because it’s not true!

Purchase Power

Here is how it works. With a reverse mortgage loan for purchase (also called HECM for purchase loan), your client sells their existing home. They then take out a reverse mortgage on the home they wish to purchase and combine that with the proceeds of their home sale to cover the down payment (along with additional funds if necessary).

Hear How Kathy’s Realtor Helped
Her Afford Her Dream Home

Hear How Kathy’s Realtor Helped Her Afford Her Dream Home

Estimated Cash From Borrower*

Age of Youngest Borrower

Faded portion of bar represents the estimated reverse mortgage funds.

This information is provided as a guideline and does not reflect the final outcome for any particular homebuyer or property. The actual reverse mortgage available funds are based on current interest rates, current charges associated with loan, borrower date of birth (or non-borrowing spouse, if applicable), the property sales price and standard closing cost. Interest rates and loan fees are subject to change without notice. Following the closing of the home purchase, no further principal or interest payments will be required as long as one borrower occupies the home as their primary residence and adheres to all HUD guidelines of loan. Borrower must remain current on property taxes, homeowner’s insurance (and homeowner association dues, if applicable), and home must be maintained.

Then What Happens?

Your client enjoys the same terms for any home with a reverse mortgage loan:

Never have to make monthly mortgage payments unless they want to

The home is theirs, in their name, and no one can make them leave

Simply pay homeowner’s insurance, property taxes, and maintain the home

Who’s a Great Fit for a Reverse for Purchase Loan?

Folks who want to retire in a bigger, nicer home than they could otherwise purchase.

Folks who want to move to a more expensive area than they currently live in.

Folks who want to move to an equivalent home, but want significant cash-flow afterward.

Folks who still have monthly mortgage payments that they want to end ASAP.

View Qualifying Conditions

One spouse must be 62 years or older to be eligible for a reverse mortgage. In Texas, both spouses must be 62 years or older
The property must be a single-family home, a 2 to a 4-unit dwelling or an FHA-approved condo
Must receive reverse mortgage counseling from a HUD-approved counseling agency
The home must be a primary residence (live there 6+ months per year)
Must meet minimal credit and property requirements
Must not be delinquent on any federal debt

Frequently Asked Questions About…

Reverse Mortgages for Purchase

When a home is purchased with a reverse mortgage, will the loan be held on the existing home or the newly purchased home?

The reverse mortgage will be held on the newly purchased home as the primary residence. The down payment needed at closing is usually between 30-70%, whether it’s in Bakersfield or elsewhere in California.

Why is the down payment higher with a reverse mortgage?

The down payment is higher initially because the buyer will not be required to make monthly mortgage payments (except for taxes and insurance, and the home must be maintained). The advantage in cash flow over the years, combined with the ability to purchase a more expensive home, can more than justify the difference for many home buyers.*

How will the lender determine how much money is needed at closing?

The required down payment on the new home is determined by a number of factors, including the age or eligible non-borrowing spouse’s age, if applicable; current interest rates; and the lesser of the home’s appraised value or purchase price.

What sources of funds (money) are allowed with the purchase of a home with a reverse mortgage?

The money must come from liquid assets (bank accounts, CDs, retirement accounts, etc.) or from the documented sale of other assets like the existing home.

Why Fairway Should Be Your Go-To Partner

It’s not just because we’re nationwide and have served millions of clients, it’s because customer service is a way of life to us. We want to collaborate with you, your client, your client’s family, and their advisors to create a holistic home equity strategy for retirement.

*This advertisement does not constitute tax and/or financial advice from Fairway.

Real Estate Professionals

You Can Help Retirees Maximize Their Purchasing Power

You Can Help Retirees Maximize Their Purchasing Power

With a reverse for purchase loan, retirees can use their home equity to live where they want, in the house that they want—without having to pay monthly mortgage payments. They just need to pay taxes, insurance, and maintain the home.

Purchase Power

Hear How Kathy’s Realtor Helped
Her Afford Her Dream Home

Hear How Kathy’s Realtor Helped Her Afford Her Dream Home

Estimated Cash From Borrower*

Age of Youngest Borrower

Then What Happens?

Your client enjoys the same terms for any home with a reverse mortgage loan:

Who’s a Great Fit for a Reverse for Purchase Loan?

Folks who want to retire in a bigger, nicer home than they could otherwise purchase.

Folks who want to move to a more expensive area than they currently live in.

Folks who want to move to an equivalent home, but want significant cash-flow afterward.

Folks who still have monthly mortgage payments that they want to end ASAP.

Frequently Asked Questions About…

Reverse Mortgages for Purchase

Why Fairway Should Be Your Go-To Partner

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