Can you use a reverse mortgage for a purchase of a home and get down payment assistance?
Home Mortgage
Tyrone P asked:
This is the right question just answer without implying people asking do not understand. That is why there is a question.
Kelly
This is the right question just answer without implying people asking do not understand. That is why there is a question.
Kelly
July 24th, 2009 at 8:21 pm
Jessie
NO. In fact, you cannot use a reverse mortage to purchase a home at all.
July 25th, 2009 at 5:55 pm
Tyler
Not a good move.
July 26th, 2009 at 8:13 am
Barbara
No… with a Reverse Mortgage you’re getting monthly payments that are coming out of the equity in your house. If you were to just get a 2nd mortgage or home equity loan, you could use those proceeds for a down payment on another home but you may not qualify for a mortgage when you’ve already got one home with 2 mortgages on it; depending on your debt/income ratio, but if all you have is a reverse mortgage, you’re not going to be able to purchase another property using that. You may be able to use those payments to make the payments on the new property but you’ll have to first secure the down payment and qualify for a mortgage on the new property.
July 29th, 2009 at 1:39 am
Arthur
No, I see why you think nobody will understand. A reverse mortgage is only for the elderly who already own a home so why they would be wanting to pay a down payment is the main confusion.
July 30th, 2009 at 5:10 am
Herbert
Short answer: no
August 1st, 2009 at 8:17 pm
Steve
don’t know if this solves your problem but what I suggest doing in hard financialsituations is to obtain a recent copy of your credit score&report. i got my credit score&report at
August 2nd, 2009 at 9:35 am
Constance
The answer is both “No” and “Yes”. Yes you can purchase a home with a Reverse Mortgage and many people do when they down size and are putting money down. No you can not get any down payment assistance because you need the equity to be able to draw the money out over time.