Buy with 50% down and no mortgage payments.


What if I told you I could build you a home here in Florida, you can give me half of its purchase price and never must make monthly payments on the balance? 

Too good to be true right?

Nope. Not only is it true, it gets better.

 Is there a catch?  Of course; there are few but they are low bars to hurdle.

but the truth is that this is a US Government sponsored program designed to aid the retiring population afford to stay in their homes. What most people don’t realize is that the program will help you BUY your retirement home or even a second home.

Here is how it works

1.       You must be over 62 years of age

2.       You have to put up about 50% of the purchase price (this amount decreases if you are older, a good rule of thumb is to take you age and subtract 10 – this will be the amount of the loan you can get. So if you are 72, you can borrow about 62%,

3.       It is a loan on which you do not make any payments. The loan is paid back with accrued interest if :

a.       You ever sell the house

b.       You  and your estate sells the house

c.       You move out for more than a year.

4.       The interest rate is generally very favorable because the bank is loaning  only about half of I the homes value.

On late night TV you may have heard the years, celebrities touting reverse mortgages as a way to supplement a senior's fixed income by tapping equity that has accrued in their home.  I be never liked the term “reverse mortgage” but it came form the original program seniors borrowed on their existing home and instead of getting the money they they borrowed as a m lump sum, they received payments monthly from the bank.

The program for new homes was introduced in  2009, by the Federal Housing Administration and was called called the Home Equity Conversion Mortgage for Purchase, or HECM, which allows older Americans to buy a new home by putting a reverse mortgage on it. From October 2013 through June 2014, more than 40,000 reverse mortgages were originated, according to the FHA. But only 3.3% of those were used to buy another home. So  the product has been little used. I would like to change that!

"It's new and just catching on," says Peter Bell, president and CEO of the National Reverse Mortgage Lenders Association. When I found out about it recently I have been researching the best suppliers of these programs and the pros and cons.  In my mind, the  positives far out-weigh the negatives  IF APPROACHED PROPERLY.

This program works very well for my clients that want to keep their house up north close to their family and have a second home here. They can go “home” up north to be with family and travel here to relax and live the Florida Dream.

Below are some key points you'll want to know about reverse mortgages before applying for one.

Borrower requirements under HECM for Purchase to get a reverse mortgage are:

The minimum age is 62 years old.

Borrowers must own the property outright or have a considerable amount of equity in it.

The home must be the borrower's primary residence. Now keep in mind you can use your primary residence to get a limp sum and then use that money to buy the Florida home.

The borrower must be able to pay the home's property taxes, insurance premiums, homeowners association dues and any other ongoing property costs.

The borrower must have no delinquent federal debt.

The property must pass certain requirements, such as meeting all FHA standards and flood requirements. ( this eliminates most new and existing condo communities unless the condo community will qualify for FHA financing ( most do not)

Types of eligible dwellings under HECM for Purchase:

Single-family homes.

2- to 4-unit homes with 1 unit occupied by the borrower.

Condominiums approved by the U.S. Department of Housing and Urban Development.

FHA-approved manufactured homes.

Any new construction requires a certificate of occupancy, NRMLA's Bell says. Right now, you can't get reverse mortgages on homes that are to be built by a developer, he says.

How this reverse mortgage works

The amount you can borrow under HECM for Purchase in a reverse mortgage depends on:

The age of the youngest borrower or non-borrowing spouse.

The current interest rate.

The home's appraised value.

The initial mortgage insurance premium.

No Payment Mortgage Inquiry

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Interested in a no payment loan? Want to get prequalified? Get started now! ( remember you have to be over 62 years old)

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