Nancy Soule, a longtime local loan broker, spoke to our Realtors' meeting this week. I had realized that Seniors could obtain a reverse mortgage for funds needed in later life, but she brought up a new possibility: Using a reverse mortgage to buy a new home. If a retiree wants to buy a smaller home but would like to conserve some assets for emergencies, he or she can use a reverse mortgage for part of the cost.
Even though total monthly income may be from Social Security, qualifying for this loan is not a problem. Because there are no payments to make, a reverse mortgage has no income qualifications. Even if the borrower has less than stellar credit, this type of loan is possible...as long as any liens are paid off.
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