Yes, one can get a reverse mortgage on a newly purchased home through lenders or financial institutions, but one has to fulfill certain basic requirements for the same.
Qualifying for newly purchased home reverse mortgage:
Qualifying for the reverse mortgage is not that difficult, this type of loan is best suited for senior citizens to earn a steady income. Majority of the senior house owners would opt to sell their large residence to purchase a smaller one. The qualifying criterion is calculated depending on whether enough equity and down payment is accumulated so that you can enter into reverse mortgage agreement. Here the lender would assist interested claimants with requirements that should be met in order to take advantage of the mortgage. There is no set or limited time period that the owner must live or number of years it is paid for, to achieve the equity amount that is based on value of property.
Who can qualify for the reverse mortgage?
Any senior citizen aged sixty two or more with a house, would automatically quality for this mortgage program. Reverse mortgage is a repayment plan where in the house owners receive monthly payments and eliminates further mortgage payments that an owner is held liable for. Some of the senior citizens wait beyond least age for the requirement just to have the benefit of lower rate of interest, as the interest rate is dependent on the age of the house owner or resident.
There are numerous benefits of the reverse mortgage especially for senior citizens, who want to lead a normal life even after retirement by earning steady income from equity generated on house. This money can be used by the owner to pay utility bills, house maintenance and medical care. In addition the owner can receive payments from the lender through several options like monthly payments or one time lump sum payment.
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