A reverse to purchase loan in the simplest terms is the money a borrower puts down on the purchase of a home is used to make the payments. That borrower then will not have mortgage payments.
The amount required to put down is determined by the age of the youngest borrower. The younger a borrower is, the more they will be required to put down. In a simple scenario, for example, if a borrower buys a home for $500,000 and the required down payment is $250,000, then they will not have a mortgage payment on that home for as long as they live in that home.
Remember the borrower will not have a mortgage payment but they will be required to make all home insurance and property tax payments. The reverse to purchase is available to borrowers where at least one of the borrowers is 62 years of age.
There are a lot of details in this type of home purchase and financing. The best thing to do if anyone wants to discuss this program in detail is to call Indigo Mortgage and set an appointment to talk face to face or over the phone. Indigo Mortgage has been certified to offer Reverse Mortgages for well over a decade. We’ve served New Mexico home buyers for more than 20 years and promise to provide complete, accurate information as you shop your home loan to find the right fit for you.