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An
FHA-insured mortgage enables
senior homebuyers, age 62 or
older, to purchase a new
primary residence and obtain
a reverse mortgage in
simultaneous transactions
with no monthly mortgage
payments. It allows buyers
to combine reverse mortgage
proceeds with a down payment
to purchase a new home.
What sources are allowed for
the cash required to close?
Sale
of the departure home,
homebuyer’s other assets, or
savings.
What sources cannot be used
for the cash required to
close?
Seller financing and
concessions, cash withdrawn
from credit cards, a bridge
loan of any kind or
subordinate financing.
What property types are
eligible?
Single Family, HUD-approved
condos, planned unit
developments, two to
four-unit properties (one
must be owner occupied) and
manufactured homes built
before June 15, 1976
What property types are not
eligible?
Co-ops, second homes,
boarding houses, Bed and
Breakfast establishments and
manufactured homes built
before June 15, 1976 and any
on leased land.
What requirements must the
new home meet?
Must
become the buyer’s primary
residence, must be occupied
by the buyer within 60 days
from closing date and
construction must be
completed the property
habitable and a certificate
of occupancy or its
equivalent issued prior to
the loan application.
– Jan Merriman
PA Preferred Mortgage Co,
Inc
108 Old Route 30
Greensburg, PA
724-838-3660
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