WSB Mortgage Services

on using the RM to buy new home.


1. Do both the sale and the purchase of the new home need to be done simultaneously?
A. You can sell your home anytime and then purchase a home using a reverse mortgage to finance it at any time. If you do not have a home that you need to sell then you can just show that you do have the money necessary to pay your portion of the purchase and use the reverse mortgage to provide the balance.
You cannot get a home using a reverse mortgage without putting some of your money into the transaction, no seller financing or gifts of the down payment.

2. Assume a home was sold netting $100,000. Money is in money market fund. What value of new home might one look for to finance the new home with RM and the $100K to be the down payment. Assume the youngest buyer is 75. What formula can you use to determine this new home value considering age and down payment as variables.
A. There is no formula we can give you, it must be run on the lender provided software. You can request a quote from us and we will figure it out for you. On the 75 year old asked about they could buy a $300,000 house with $103,000 down payment using the fixed HECM.