Orange County Blog

Thursday, July 12, 2018

Buying a Home with a Reverse Mortgage

I thought that this article would be interesting to my clients, as it is a unique and different use for a traditional reverse mortgage.  It is re-published with permission from my friend, Robert Trommler from HighTech Mortgage.


Buying a Home with a Reverse Mortgage?

  Many any people may be familiar with the idea of taking out a Reverse Mortgage loan and using the borrower's existing home to access equity in that home.

 However, seniors (age 62+) may also Buy a Home with a Reverse Mortgage. Some possible advantages to doing this are:

1.   Loan qualification may be easier than with a conventional loan; and

 2.   If the loan is approved and closes, the borrower takes title to the new home and will not be responsible for monthly mortgage payments associated with the reverse mortgage loan. The borrower will still be responsible for paying his/her property taxes and insurance obligations.

 Reverse Mortgage for purchase may help permit qualifying seniors to “right-size” into another home without creating a corresponding monthly mortgage payment obligation.

 The “down-payment” needed to qualify for this loan program is higher than a conventional loan because the borrower builds an equity position with their “down” and that is what carries most of the loan qualification weight, not the borrower’s income status or history.

Most successful retirements focus on income, not just assets, so being able to buy a new home while not adding a new monthly mortgage payment obligation can present a very attractive option.

Having the opportunity to right-size with a Reverse Mortgage for purchase can provide valuable options to seniors and retirees such as:


·    Moving to a senior community to be in a more safe and controlled neighborhood

·    Moving closer to friends and family

·    Living in a home that better meets life-style needs and movement abilities

·    Freeing up home equity (from the sale of a previous property) to be used for life-style or to build up investment  portfolios

·    Entering into “owner partnerships” with other senior friends or family members

 A Reverse Mortgage for purchase can be used in many beneficial ways to help seniors achieve their home ownership goals.

 However, it is important for potential borrowers to work with an experienced mortgage loan officer that has a full understanding of the loan program’s capabilities and also its limitations.


 Robert Trommler – Licensed Loan Officer

 NMLS# 1157859

 HighTechLending Inc

 Company NMLS # 7147

 2030 Main Street, Suite #350

 Irvine, Ca. 92614

 714 669 8313

  Licensed by the Department of Business Oversight under the California Residential Mortgage

Lending Act. Equal Housing Lender.

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