Posted on: 09th Oct, 2009 01:45 pm
Parents in their 80's - rennting for 5yrs - want to buy a house can they get a reverse mortgage if they put money down. They earn less then $20,000 a year - have $100,000 in savings
The amount of the reverse mortgage they can qualify for is determined by the youngest borrowers date of birth, the zip code and the home's value. Typically a reverse mortgage needs about 40% equity to be an option. They should speak with a loan officer who does reverse mortgages on how much would be needed in order for them to obtain a reverse mortgage, the calculation isn't a tough one but the software & the above 3 pieces of info is needed.
Mainly I was referring to a Reverse Mortgage Purchase Program - I do have someone doiang the calulations on a house $89,000.0 with $45,000 down.
Yes, purchasing a home is a feature that most reverse mortgage lenders have.
You didn't say the exact age of your parents, so I'm going to assume they're both 85 and born on 10/10/1924.
They can purchase a $89,000.00 home for $32,836.37 with a fixed interest rate of 5.56% - and never have a monthly mortgage payment.
You mentioned they make $20,000.00 per year, but income isn't considered when getting a Reverse Mortgage, so we don't have to worry about their income. Credit, assets and employment aren't considerations either.
They can purchase a $89,000.00 home for $32,836.37 with a fixed interest rate of 5.56% - and never have a monthly mortgage payment.
You mentioned they make $20,000.00 per year, but income isn't considered when getting a Reverse Mortgage, so we don't have to worry about their income. Credit, assets and employment aren't considerations either.
